Dominant market position Substantial economies of scale Strong franchise Participation in highly competitive industry The rating on Bentonville, Ark.-based retailer Wal-Mart Stores Inc. reflects Standard&Poor's Ratings Services' expectation that profitability will remain strong despite weaknessin domestic sales, and that continued expansion in international markets will be the main factor behind sales growth. 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, with support from 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
