S&P upgrades Home Depot

Standard & Poor's said it raised Home Depot Inc.'s corporate credit rating to A- from BBB+.

The outlook is stable.

The upgrade reflects Home Depot's more conservative financial policy, as signaled by the revision of its internal target leverage metric to 2x from 2.5x, S&P said, and a belief that the company should be able to sustain profitability and credit measures despite a forecast for weak economic conditions.

Home Depot's strong business risk profile reflects its No. 1 position as the largest home improvement retailer in the world, supported by its substantial U.S. store footprint, improved profitability and solid free cash flow-generating ability, the agency said.

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