The ratings reflect Canadian Tire Corp. Ltd.'s (Canadian Tire) leading position in Canadian hard-goods retailing, a credit card operation that is a significant contributor to operating income, resilient earnings in the context of a very difficult economic and competitive environment, and improving credit protection measures and substantial liquidity in light of recent asset monetizations. These factors are offset by profitability that remains quite low for the rating category, leverage that still reflects the company's heavy capital program, and an ambitious supply-chain program with an undefined payback. Canadian Tire is one of Canada's largest retailers, specializing in automotive, sports and leisure, and housewares categories. The company operates 451 stores through 432 associate dealers, with 285 stores in Ontario and Quebec. Canadian
