Good market position as the world's largest home improvement retailer; Satisfactory free cash flow generation, even in the current weak environment; and Strong liquidity. Weak state of the U.S. housing market and home improvement industry; Meaningful share repurchase activity; and Intensely competitive environment. The ratings on Atlanta-based Home Depot Inc. reflect our forecast that profitability and credit measures should remain close to current levels over the near term, despite our expectations for generally flat home improvement industry demand. Financial policy remains a key rating factor. The ratings incorporate our expectation that credit ratios will eventually weaken, but remain consistent with the company's target 2.5x leverage metric and with our benchmark for an "intermediate" financial risk profile assessment (as defined by
