Fitch Ratings Affirms Wal-Mart's IDR at 'AA'; Outlook Stable.

CHICAGO -- Fitch Ratings has affirmed the long- and short-term Issuer Default Rating (IDR) and outstanding debt ratings of Wal-Mart Stores, Inc. (WMT) as follows:

--Long-term IDR 'AA';

--Bank credit facility 'AA';

--Senior notes 'AA';

--Short-term IDR at 'F1+';

--Commercial paper 'F1+'.

The Rating Outlook is Stable. WMT had approximately $47.4 billion of debt outstanding as of Oct. 31, 2007.

The ratings and outlook reflect WMT's dominant market position supported by a low cost structure that allows the company to capture market share through its price leadership in most product categories. Also considered is WMT's steady operating performance which has resulted in consistent solid credit metrics despite slower store base and comparable store sales growth. These factors are balanced by a more challenging economic environment and debt-financed share repurchase activity.

WMT is the world's largest retailer with revenues of approximately $370 billion and 7,131 stores in the last twelve months (LTM) ending Oct. 31, 2007. WMT's successful every day low price strategy has enabled it to capture market share in an intensely competitive environment and its efficient inventory management as well as innovative logistics and operating systems have resulted in steady operating performance.

Therefore, although store base growth has decreased to approximately 6% this year and comparable store sales growth has declined to a low single-digit range since fiscal 2005, WMT has achieved relatively steady operating EBIT margins with LTM operating EBIT margin of 5.8% versus 5.9% in 2006. Given WMT's solid operating results, its credit metrics have remained relatively stable for the past five years with leverage defined as total adjusted debt/EBITDAR of 1.8 times (x) to 2.0x and coverage defined as EBITDAR/interest plus rents at 8.0x-9.0x.

Going forward, Fitch anticipates that WMT's comparable store sales will remain in the low single digit range as a result of higher energy product costs and housing weakness pressuring WMT's lower-income core customer base. Nevertheless, free cash flow is anticipated to increase given lower capital expenditures. While debt is anticipated to increase over time as share repurchases are funded with a combination of debt and cash flow generation, Fitch anticipates that WMT's credit metrics will remain steady at current levels.

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