The ratings on Canadian Tire Corp. Ltd. reflect the Toronto-based company's leading position as the country's largest hard goods retailer, specializing in automotive, sports and leisure, and housewares categories operating in an inter-related network of businesses engaged in retail, financial services, and petroleum. The ratings are further supported by the company's resilient earnings and consistent same-store sales growth in the past several years, strong liquidity, and a well-managed credit card operation that contributes significantly to operating income. These factors are offset by profitability measures that are only average for the ratings category; operating margins that have grown very gradually in the past few years despite a heavy capital program; and a very competitive operating environment. Canadian Tire's third-quarter results (ended
