The rating on Bentonville, Ark.-based retailer Wal-Mart Stores Inc. reflects its "excellent" business risk profile and "minimal" financial risk profile. Although Standard&Poor's Ratings Services' criteria may indicate a higher rating, we note below our concerns over risk management and corporate governance. The business risk assessment is founded on our expectation that its operating performance will remain strong based on significant competitive advantages, in terms of its strong market positions in general merchandise and groceries, large scale, and highly efficient operations. With $447 billion in revenues from more than 10,000 stores across the globe, it is the world's largest retailer, and is more than 6x larger than Target Corp., its nearest competitor. We expect it to continue to be
