Good position as the world's largest home improvement retailer. Meaningful operating efficiency improvements. Satisfactory free cash flow generation, even in the current weak environment. Fragile state of the U.S. housing market and home improvement industry. Intense competition. Meaningful share repurchase activity. Standard&Poor's Ratings Services' view that Atlanta-based Home Depot Inc.'s business risk profile is "strong" (as our criteria define the term) reflects its No. 1 position as the largest home improvement retailer in the world, supported by its substantial U.S. store footprint, its improved profitability, and solid free cash flow-generating ability. We believe its profitability is sustainable and could improve modestly absent a meaningful economic downturn. We classify Home Depot's financial risk as "intermediate." Our categorization incorporates our
