Moody's: Lowe's unchanged

Moody's Investors Service said that Lowe's Cos., Inc.'s announcement that its board of directors has authorized a $5 billion share repurchase program has no immediate impact on either the A1/Prime-1 ratings or the stable outlook.

"We expect that Lowe's will likely fund the majority of this program with excess cash and will only modestly increase debt to fund these buybacks," stated Moody's senior analyst Maggie Taylor.

"We anticipate that Lowe's will manage the timing of its share repurchases such that it continues to maintain credit metrics consistent with its A1 rating."

The last rating action for Lowe's was on Aug. 29, 2006, when the senior unsecured rating was upgraded to A1 from A2, the agency added.

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