NEW YORK (Standard & Poor's) May 13, 2004--Standard & Poor's Ratings Services today said that the announcement by Home Depot Inc. (AA/Stable/A-1+) regarding its plan to acquire Home Mart has no impact on the ratings or outlook on the company. Home Mart is the second-largest home improvement retailer in Mexico, with 20 stores. The acquisition will expand Home Depot's presence in Mexico to 39 stores. Although no price has been disclosed for this cash transaction, Standard & Poor's believes that the deal in itself does not constitute a credit-damaging acquisition. Home Depot generated operating cash flow in excess of $4.0 billion in 2003, and had $2.8 billion of cash on the balance sheet as of Feb. 1, 2004.
