Sizable market position as the world's largest home improvement retailer; Strong liquidity; and Healthy cash flow generation. Ongoing decline in home improvement spending attributed to continued weakness in the U.S. housing market and extremely challenging economic conditions; Higher debt levels following elevated share repurchase activity as part of 2007 recapitalization plan, the remainder of which is currently on hold; and Intense competition with Lowe's Cos. Inc. The ratings on Home Depot Inc. reflect the company's sizable position in the still-fragmented home improvement industry, intermediate financial profile, and considerable cash flow generation. The high exposure that U.S. home improvement retail has to the cyclical domestic housing industry, and expectations that the U.S. housing market will remain weak over the near-to-intermediate term
