Morningstar DBRS confirmed The Home Depot, Inc.'s Issuer Rating at 'A' and its Commercial Paper rating at R-1 (low) on April 24, 2025, with Stable trends. These confirmations reflect the company's steady operating performance over the past 12 months, which aligned with Morningstar DBRS's expectations.
The rating agency acknowledged the considerable uncertainty surrounding potential shifts in U.S. tariff policy and its negative implications for consumer demand. However, Morningstar DBRS believes that Home Depot's large scale, ongoing supply chain diversification efforts, and proven operating flexibility should largely mitigate these potential risks to its operating performance.
Morningstar DBRS expects Home Depot's total revenue to grow modestly in fiscal 2025, driven by the full-year contribution from the SRS Distribution acquisition and 12 to 13 new store openings, while comparative sales are projected to remain relatively flat year over year. EBITDA margins are expected to remain stable, with cost-saving initiatives offsetting the lower-margin SRS business and near-term operating deleveraging.
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