The ratings on Toronto-based Canadian Tire Corp. Ltd. reflect the company's leading position as the country's largest hard goods retailer, specializing in the automotive, sports and leisure, and home product categories, and operating in an interrelated network of businesses engaged in retail, financial services, and petroleum. The ratings are further supported by the company's resilient earnings, consistent same-store sales growth in recent 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 second-quarter 2006 (ended
