NEW YORK (Standard & Poor's) June 2, 2003--Home Depot Inc.'s (AA/Negative/A-1+) announcement that it has authorized $500 million of share repurchases has no immediate impact on the rating and outlook. Standard & Poor's expects Home Depot to continue to generate significant free cash flow in 2003 that should allow the company to fund increased capital expenditures for store remodels and repurchase stock while maintaining significant cash balances. The negative outlook reflects weak sales trends in recent quarters. Standard & Poor's will evaluate the success of Home Depot's initiatives to improve sales trends and maintain earnings growth in 2003 in assessing the rating and outlook.
