Lowe's Companies, Inc.: Rating Report

On May 17, 2019, DBRS Limited (DBRS) downgraded the Issuer Rating and Senior Unsecured Debt rating of Lowe’s Companies, Inc. (Lowe’s or the Company) to BBB (high) from A (low) and its Short-Term Issuer Rating to R-2 (high) from R-1 (low). All trends are Stable. The downgrades reflect the Company’s revised leverage target while also acknowledging a decline in reported operating profit resulting from charges taken as a result of a strategic reassessment that were concentrated in the fiscal year ended February 1, 2019 (F2018), but which should help drive profit growth going forward. The ratings continue to be supported by Lowe’s strong brand and market position, large scale and geographic diversification and free cash flow-generating capacity. The ratings also consider the intense competitive environment and the economic cyclicality of the home improvement sector.