Moody's: Home Depot unchanged

Moody's Investors Service said it stated that's announcement by Home Depot that it was exiting several non-core businesses and writing down the value of its remaining stake in Home Depot Supply, resulting in non-cash charges totaling $780 million, would have no immediate impact on either the Baa1/Prime-2 ratings or the stable outlook.

"The decision to exit what have become non-core retail businesses that have a higher-end focus is logical due to the macroeconomic environment," stated Moody's senior analyst Charlie O'Shea.

"The write-down of the investment in Home Depot Supply is not surprising given its reliance on new construction. The total combined after-tax cash impact of these strategic decisions is about $176 million, which is prior to any proceeds from inventory liquidations. Once these proceeds are received, Moody's expects little ultimate impact on credit metrics, and therefore no short-term stress on ratings or the outlook."

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