NEW YORK (AP) — Moody’s Investors Service on Tuesday upgraded the senior unsecured credit rating on Home Depot Inc. one notch to “A3,” after the company announced its second upward revision to its earnings guidance for the year. Consumers are expected to continue their home repair and replacement projects despite a weak economy and sluggish home sales.

The upgrade and stable outlook affects about $10.3 billion in debt.

Moody’s said the home-improvement retailer’s scale and strong market position contributed to the upgrade from “Baa1.” Moody’s said the company has outperformed competitor Lowe’s for the past nine quarters and has a moderately conservative financial policy.

Home Depot operates about 2,250 stores in the United States, Canada, China and Mexico.

This month, the company reported second-quarter net income rose 14 percent to $1.36 billion, or 86 cents per share, beating analysts’ expectations by 3 cents. Revenue rose 4 percent to $20.23 billion, also edging past estimates.

Home Depot, based in Atlanta, raised its full-year earnings guidance last month to $2.34 per share from $2.24. Analysts had expected $2.30. It expects yearly revenue to rise 2.5 percent.

Shares fell 17 cents to $33.57.