Canada's largest hard goods retailer with a strong branding and loyalty program Resilient operating margins despite soft revenues in difficult market conditions Challenging market environment, with weak consumer demand and a very competitive general merchandise marketplace Improving credit measures Strong liquidity and ample financial flexibility The stable outlook on Canadian Tire Corp. Ltd. reflects Standard&Poor's Ratings Services' expectation that the company's steady operating performance in 2013 will enable it to maintain debt leverage at about the 2.5x-3.0x, which would be consistent with the ratings. We could lower the ratings if earnings weaken such that fully adjusted debt to EBITDA began trending materially above 3x with concurrently poor prospects for deleveraging. Upside ratings potential is unlikely in the near
