Moody's: Home Depot notes A2

Moody's Investors Service said it affirmed the Home Depot's A2 senior unsecured and prime-1 short term commercial-paper ratings.

The agency also said it assigned an A2 rating to the proposed senior unsecured notes.

The outlook is stable.

The ratings reflect Home Depot's considerable scale and market position, along with its clearly articulated financial policy and excellent liquidity, Moody's said.

The ratings also consider an expectation that despite further improvement in operating performance and earnings and credit metrics will remain in-line with an A2 rating, the agency said.

The agency said the company's debt-to-EBITDA ratio will increase to about 1.9x pro forma for the proposed debt raise from about 1.8x as of the long-term period ending Jan. 29.

This is consistent with an expectation that the company would borrow to keep its credit metrics in line with its stated leverage target of 2x lease adjusted debt-to-EBITDAR, Moody's said.

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