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S&P rates Lowe's notes A-
Standard & Poor's said it assigned an A- debt rating to Lowe's Cos. Inc.'s $1 billion proposed senior unsecured notes.
The company is expected to issue the proposed notes under its shelf registration statement filed Sept. 5, 2012.
The proceeds will be used for general corporate purposes, including share repurchases, S&P said.
Pro forma leverage is expected to remain at about 2.4x, which is consistent with the rating.
The company's A- corporate credit rating and stable outlook are unchanged.
The ratings reflect the company's strong business risk profile, supported by its solid position as the second largest home improvement retailer in the United States, S&P said, and a forecast for continued satisfactory same-store sales and profitability.
The company also will maintain an intermediate financial risk profile, incorporating solid cash flow generation, financial policy target of 2.25x and adequate liquidity, the agency said.
Lowe's also benefits from its significant store ownership that provides cost leverage and financial flexibility, S&P added.
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