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

DBRS Limited (DBRS) assigned a rating of “A” with a Stable trend to Home Depot, Inc.’s (Home Depot or the Company) multi-tranche debt issuance totalling $3.5 billion announced on November 27, 2018. The rating being assigned is based upon the rating on already-outstanding series of the Company’s Senior Unsecured Debt.

The issuance is made up of the following tranches (collectively, the Notes):
(1) $300 million, Floating Rate Notes due March 1, 2022; and
(2) $700 million, 3.250% Senior Unsecured Notes due March 1, 2022; and
(3) $1,000 million, 3.900% Senior Unsecured Notes due December 6, 2028; and
(4) $1,500 million, 4.500% Senior Unsecured Notes due December 6, 2048.

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, large scale, geographic diversification and free cash-generating capacity. The ratings also reflect the intense competition and cyclicality of the home improvement retail industry as well as risks related to possible future growth strategies.

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

The principal methodology is Rating Companies in the Merchandising Industry, which can be found on dbrs.com under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.