The ratings on Toronto-based Canadian Tire Corp. Ltd. reflect the company's leading position as the country's largest hard goods retailer, established through strong branding and extensive market coverage. The ratings are further supported by what Standard&Poor's Ratings Services views as the company's resilient earnings in challenging market conditions compared with Canadian Tire's peers, in addition to a well-managed financial services operation that contributes significantly to operating income. These factors are partially offset by what we see as a very competitive operating environment and the general slowing of Canadian consumer spending leading to soft same-store sales (SSS) at the company's core Canadian Tire dealerships and pressure on the company's profitability margins. Canadian Tire is one of Canada's largest general
