Sizable market position, with roughly 2x the sales of its nearest competitor; Strong liquidity; and Healthy cash flow generation. The housing market is expected to remain challenging over the next two years; and Financial policy has become somewhat more aggressive over the past year with increased debt-financed share repurchase activity. The ratings on Home Depot Inc. reflect the company's outstanding position in the still-fragmented home improvement industry, its excellent financial profile, and healthy cash flow generation. Home Depot, which pioneered the full-service, warehouse-style format in the 1970s, has an annual revenue base of $90.8 billion, and is roughly twice the size of its nearest competitor, Lowe's Cos. Inc. Atlanta, Ga.-based Home Depot had 2,147 retail stores at the end of
