S&P rates Lowe's loan A

Standard & Poor's said it assigned an A senior unsecured debt rating to Lowe's Cos. Inc.'s $1.75 billion senior unsecured revolving credit facility due Oct. 25, 2016.

The agency also said it withdrew the A senior unsecured debt rating on the company's $1.75 billion revolving credit facility due June 15, 2012, which the new facility replaces.

All of the company's existing ratings, including the A corporate credit rating, remain unchanged.

The outlook is stable.

The new revolver will be used for general corporate purposes, including commercial-paper backup, S&P said.

The company should continue to report good profitability and free cash flow, despite the potential for continued high share-repurchase activity and expectations for a tough economic environment, the agency said.

Lowe's business risk profile is strong, reflecting its favorable No. 2 market position in the retail home improvement industry, overall satisfactory operating performance and substantial cash flow generation, the agency said.

This is despite intense competition from its larger rival, Home Depot Inc., S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.