Standard&Poor's rating on Atlanta-based Home Depot Inc. is based on a business risk profile that we see as "strong," reflecting its No. 1 position as the largest home improvement retailer in the world. This is supported by its substantial U.S. store footprint, its improved profitability, and our forecast for continued solid free cash flow generation. In our view, Home Depot's wide, competitively-priced product offering within the home improvement industry is a competitive advantage. We believe the company's profit improvement over the past few years is sustainable, and that there is potential for further modest progress absent a meaningful economic downturn. The rating also takes into account our view that Home Depot's financial risk profile is "intermediate." We expect
