The ratings on Home Depot Inc. reflect the company's No. 1 position in the fragmented home improvement industry, intermediate financial profile, and considerable cash flow generation. These factors are partly offset by the weak state of the U.S. housing market and home improvement industry, intense competition from No. 2 competitor Lowes Cos. Inc., and potentially more aggressive shareholder policy in the future. Atlanta-based Home Depot, which pioneered the full-service, warehouse-style format in the 1970s, has a leading market position in home improvement retail. The company has an annual revenue base in excess of $66 billion and is meaningfully larger than its nearest competitor, Lowe's Cos. Inc., which has a revenue base of about $47 billion. At Jan. 31, 2010, Home
