Standard&Poor's Ratings Services views Atlanta-based Home Depot Inc.'s business risk profile as "strong," reflecting its No. 1 position as the largest home improvement retailer in the world, supported by its substantial U.S. store footprint, its improved profitability, and solid free cash flow-generating ability. We believe that recent improvements in profitability are sustainable and that there is potential for further modest progress absent a meaningful economic downturn. We assess Home Depot's financial risk profile as "intermediate." We expect the company will maintain its target maximum internal leverage metric at 2x, resulting in credit measures remaining at or near current levels. As of April 29, 2012, these include total debt to EBITDA of 1.8x, funds from operations (FFO) to total
