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Canadian Tire Corp. Ltd. CCR Affirmed At 'BBB+' On Proposed Acquisition Of Forzani Group Ltd.
Standard & Poors, May 2011
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
Abstract
We are affirming our 'BBB+' long-term corporate credit rating on Canadian Tire Corp. Ltd. following the company's proposed C$771 million acquisition of The Forzani Group Ltd. We view the acquisition and financing as consistent with our existing rating and outlook on Canadian Tire. We believe this transaction supports Canadian Tire's business risk profile by adding an established retail platform, with only a modest and short-lived increase in financial risk. The stable outlook reflects our expectation that the company's steady operating performance and lower capital expenditures in 2011 will enable it to reduce debt and return leverage to the 2.5x-3.0x range within 18-24 months. TORONTO (Standard & Poor's) May 9, 2011--Standard & Poor's Ratings Services today said it affirmed its 'BBB+'...
Companies mentioned in this report are: Canadian Tire Corp. Ltd.
Action: Affirmed
Action: Outlook: Stable
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