DBRS rates Home Depot notes A

DBRS said it assigned a rating of A with a stable trend to the Home Depot, Inc.’s debt issuance of $1 billion 2.95% notes due June 15, 2029.

The rating is based on the rating on an already outstanding series of the company’s senior unsecured debt, DBRS said.

The notes are unsecured obligations which rank equally with Home Depot’s existing and future unsecured and unsubordinated indebtedness, the agency said.

The company intends to use the net proceeds from the notes for general corporate purposes, DBRS said.

The company issued an additional $400 million 3.9% notes due June 15, 2047, which are exchangeable with and part of a single series of senior debt securities with the $750 million principal amount of the 3.9% notes due 2047, the agency said.

The ratings continue to be supported by its dominant market position, large scale, geographic diversification and free cash-generating capacity, DBRS said.

The ratings also reflect the intense competition and cyclicality of the home improvement retail industry, the agency said, as well as risks related to possible future growth strategies.

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