The ratings on Canadian Tire Corp. Ltd. reflect its strong market position considering its nationwide dealer store network, high-quality assets in the form of new format stores, strong liquidity, and securitization potential of receivables from two distinct credit cards. These factors are offset by lower operating performance in the past two years, which has resulted in lower profitability and coverage ratios; declining same-store sales in an increasingly competitive specialty retail segment; and overall debt levels that have risen due to aggressive store expansion and technology costs. Canadian Tire is Canada's largest hard goods retailer, with 443 stores operating through an extensive dealer network. The company's three product categories are automotive, consisting of tires, auto parts, accessories, and service; sports and
