S&P: Home Depot Inc.'s Proposed Senior Unsecured Notes Rated 'A'
Our rating incorporates our expectation that the company will maintain its leverage target of 2x while pursuing its growth and shareholder initiatives. Pro forma for the proposed debt issuance, adjusted debt to EBITDA was around 1.6x as of July 31, 2016. The ratings on Home Depot also reflect the company's strong market position as the largest home-improvement retailer in the world, its attractive U. S. store footprint, good store performance and profitability, and solid free cash flow generating capability. We view the company's competitively-priced product offering within the home improvement industry as a significant advantage relative to peers. We expect the company to continue generating healthy sales and profit growth fueled by continued positive momentum in the U. S. housing market and an uptick in repair and remodeling activities as a result of lower unemployment and consumer spending.