DBRS Assigns Rating of “A,” Stable Trend, to Home Depot’s New Debt Issuance

DBRS Limited (DBRS) has today assigned a rating of “A” with a Stable trend to the Home Depot, Inc.’s (Home Depot or the Company) multi-tranche debt issuance totalling $2.0 billion announced on September 6, 2016.

The issuance is made up of the following tranches (collectively, the Notes):

(1) $1.0 billion, 2.125% Senior Unsecured Notes due September 15, 2026; and

(2) $1.0 billion, 3.500% Senior Unsecured Notes due September 15, 2056.

The Notes will be unsecured obligations and will rank equally with Home Depot’s existing and future unsecured and unsubordinated indebtedness. The Company intends to use the net proceeds from the Notes for general corporate purposes, including repurchasing shares of common stock.

Home Depot’s ratings continue to be supported by its dominant market position, size and scale, geographic diversification and real estate portfolio. The ratings also reflect intense competition in home improvement retail, the segment’s exposure to macroeconomic factors and the Company’s ambitions for continued growth and/or increasing shareholder returns.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Companies in the Merchandising Industry, which can be found on our website under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.