New York, NY, August 30, 2006--Moody's Investors Service upgraded the senior unsecured rating of home improvement retailer Lowe's Cos. Inc., to "A1," and affirmed its "Prime-1" commercial paper rating with a stable outlook.
Moody's said the upgrade reflects Lowe's solid operating performance, improved margins and operating cash flows, as well as the success of its largely self-funded growth strategy.
Moody's also cited the company for its "seamless" execution of a recent senior management shuffle and its management of a "first-class" supply chain.
In addition, Moody's said the company's performance in the first half of the year has been strong, despite macroeconomic softness. Lowe's also continues to generate positive comparable store sales, despite a robust new store construction program.
