Fitch rates Home Depot notes A

Fitch Ratings said it assigned an A rating to the Home Depot, Inc.'s proposed issuance of senior unsecured notes, which are expected to be for up to $2 billion.

The proceeds will be used for general corporate purposes, including share repurchases, Fitch said.

The ratings reflect Home Depot's strong track record of comparable store sales growth, margin expansion and cash flow generation, Fitch said.

The agency said it expects the company will maintain leverage in line with its publicly stated target of 2x over the forecast horizon.

With $95 billion in 2016 sales, Home Depot holds the leading position in the U.S. home improvement industry, which is in the midst of a recovery from the prior housing recession, Fitch said.

The agency said it anticipates a continued recovery, as well as a benign competitive environment.

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