Standard & Poor's affirms ratings on Lowe's

Standard & Poor's affirms ratings on Lowe's after it withdraws offer for Rona

Associated Press

CHICAGO (AP) -- Credit ratings agency Standard & Poor's on Wednesday took Lowe's Inc. off CreditWatch and affirmed its ratings on the home-improvement retailer.

Ratings include Lowe's "A-" corporate credit rating, indicating the company is likely to meet financial commitments, but somewhat susceptible to adverse economic trends.

Lowe's, based in Mooresville, N.C., made an offer valued at about $1.9 billion for Rona Inc., a Canadian home-improvement company, in July. Rona rejected the offer. On Monday Lowe's withdrew the bid, saying the Rona's board does not seem to want to engage in talks.

S&P said its move is based on its belief that Lowe's should now be able to sustain its credit measures near current levels since it won't be taking on a major acquisition.

The outlook is negative, however, meaning a downgrade could occur in the future.

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