The rating on Ark.-based Wal-Mart Stores Inc. reflects our expectation that profitability will remain strong despite softness in domestic sales, and that sales growth will be largely driven by continued expansion in international markets. We also expect Wal-Mart to maintain a financial policy that is commensurate with the rating. We view Wal-Mart's business profile as excellent, supported by its leading market positions in the supercenter, discount department store, and warehouse club businesses, in addition to its excellent geographic diversity, a long record of solid sales and earnings growth, and strong returns on capital. Wal-Mart is the largest retailer in the U.S.; its more than $400 billion in annual sales (approximately 60% revenues from its U.S. Wal-Mart Stores division) dwarfs those
