Fitch downgrades Home Depot ratings |
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Published
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Thu, 12 Jul 2007 19:58
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CHICAGO (AP) - Fitch Ratings on Thursday downgraded its debt ratings for Home Depot Inc., citing the home improvement retailer's lowered full-year forecast.On Tuesday Home Depot said it anticipates full-year earnings per share dropping 15 percent to 18 percent year-over-year. The company previously predicted a 9 percent decline, which included an estimated gain of 18 cents per share from its HD Supply unit for the last six months of the fiscal year.Home Depot's updated outlook classifies HD Supply as a discontinued operation and reflects a 52-week period. The 53rd week is expected to add about 3 cents per share to its full-year earnings results.Home Depot blamed continued weakness in the housing market and the sale of HD Supply for the earnings revision.Fitch downgraded Home Depot's issuer default rating to 'BBB+' from 'A-.' Its bank facility was changed to 'BBB+' from 'A-' and its senior notes rating lowered to 'BBB+' from 'A-.'The company's outlook is negative.Fitch also sees Home Depot's credit metrics weakening in the near- to mid-term on the HD Supply sale, stock buybacks and softer operating performance.Shares of Home Depot added 30 cents to $40.78 in afternoon trading.------------------Questions or comments about this story should be directed to the Financial News desk of The Associated Press at 212-621-7190.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Home Depot ratings put on negative watch; downgrade to 'BBB+' likely - S&P 