Good market position as the world's largest home improvement retailer; Consistent profitability; and Healthy cash flow generation. Weak state of the U.S. housing market and home improvement industry and Intense competition with Lowe's Cos. Inc. The ratings on Atlanta-based Home Depot Inc. reflect our belief that profitability and credit measures should remain near current levels despite our expectation for weak home improvement industry demand and the potential for increased share repurchase activity. The company's strong business risk profile reflects its no. 1 position as the largest home improvement retailer in the world supported by its substantial U.S. store footprint and recognized name, cost reductions initiatives that have limited profit erosion through the economic downturn, and meaningful free cash flow generating
