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 home, leisure, and automotive categories. The ratings are further supported by the company's resilient earnings and ample financial flexibility, as well as a well-managed financial services operation that contributes significantly to operating income. These factors are partially offset by profitability measures that are below the company's peer group, an elevated capital expenditure program, and a very competitive operating environment. Canadian Tire is one of Canada's largest general merchandise retailers, with revenues of C$8.7 billion during the last 12 months (LTM) ended March 29, 2008. It operates five interrelated businesses, resulting in higher customer loyalty, operating synergies, and
