The ratings on Home Depot Inc. reflect the company's sizable position in the still-fragmented home improvement industry, intermediate financial profile, and considerable cash flow generation. Expectations that the housing market will remain challenging over the next few years partially offset these advantages. Home Depot, which pioneered the full-service, warehouse-style format in the 1970s, has retail operations with an annual revenue base of roughly $77 billion, and is almost twice the size of its nearest competitor, Lowe's Cos. Inc. At Feb. 3, 2008, Atlanta, Ga.-based Home Depot operated more than 2,200 retail stores across the U.S., Canada, China, and Mexico. Standard&Poor's Ratings Services views Home Depot as having a strong business profile partially offseting its target credit metrics, which
