The ratings on Home Depot Inc. reflect the company's outstanding position in the still-fragmented home improvement industry, its excellent financial profile, and healthy cash flow generation. Home Depot, which pioneered the full-service, warehouse-style format in the 1970s, has an annual revenue base of $90.8 billion, and is roughly twice the size of its nearest competitor, Lowe's Cos. Inc. Atlanta, Ga.-based Home Depot had 2,147 retail stores at the end of 2006, located across the U.S., Canada, China, and Mexico. HD Supply, which primarily sells and distributes products to business-to-business customers, had 893 stores and only comprised 13% of the company's annual revenues. Management has not yet announced any decisions regarding its evaluation of strategic alternatives for HD Supply. The company's
