Home Depot Inc. announced it is acquiring residential specialty trade distribution company SRS Distribution Inc. for a total enterprise value (including net debt) of $18.25 billion. The deal is expected to be funded with balance sheet cash and debt including commercial paper and unsecured bonds. We affirmed our ratings on Home Depot, including our 'A' issuer credit rating and issue-level ratings. Short-term ratings are maintained at 'A-1.' The outlook remains stable, reflecting what we view as a temporary increase in leverage above the existing 2x downgrade threshold in the year the acquisition closes. We expect S&P Global Ratings' lease adjusted pro forma leverage to move to the mid-2x range in 2024. Given we anticipate credit quality to be restored within
