Atlanta, GA, Sept. 11--Home Depot Chairman Robert Nardelli said on Wednesday the home improvement retailer has not seen an impact on its business from an increase in interest rates.
On Tuesday, Goldman Sachs downgraded Home Depot citing rising mortgage rates and concern about longer-term growth opportunities. Home Depot and rival Lowe's Cos. have benefited as low rates spurred home purchases and refinancings over the past two years.
"We really haven't" seen an impact as mortgage rates have moved up, Nardelli told the CNBC network. "I think we'll probably see rates stay where they are."
Nardelli said "business is going well" at Home Depot, which is investing heavily in store remodels, technology and new merchandise. He said the Bush administration tax package, which provided rebate checks to certain taxpayers, have benefited the retail sector.
Nardelli also called New York Stock Exchange Chairman Richard Grasso, who has come under fire because of his $140 million pay package, a "valued member" of Home Depot's board.
Grasso is due to leave Home Depot's board next year as part of measures the Big Board is taking to remove potential conflicts of interest.
