Toronto-based Canadian Tire Corp. Ltd.'s (CTC) fiscal 2020 operating results were stronger than we expected amid the COVID-19 pandemic-led recession. Year-over-year increases in retail EBITDA as well as free operating cash flow contributed to improved leverage and have given us greater conviction that the company will maintain adjusted debt-to-EBITDA below 3x through 2022. As a result, on Feb. 26, 2021, S&P Global Ratings revised its outlook on CTC and CT Real Estate Investment Trust (CT REIT) to stable from negative and affirmed the 'BBB' ratings on the companies. The 'A-2' short-term ratings are unchanged. The stable outlook reflects our expectation that CTC will maintain an adjusted debt-to-EBITDA ratio of 2.7x-3.0x over the next two years, reflecting stable-to-improving retail revenue combined
