*NEWS*OFFICE DEPOT CREDIT RATING TO JUNK STATUS

[Anonymous]

S&P cuts Office Depot credit rating to junk status
Standard & Poor’s lowers Office Depot corporate credit rating to noninvestment grade
April 
2008:NEW YORK  – Standard & Poor’s Ratings Services on Tuesday cut
its corporate credit rating for Office Depot Inc. to noninvestment
grade status, citing a decline in operating performance at the
company’s North America retail and business solutions segments.S&P
cut the office products supplier’s corporate credit rating to “BB+”
from “BBB-.” It also cut its ratings on both Office Depot’s senior
unsecured $1 billion multicurrency revolving credit facility due 2012
and $400 million of senior unsecured notes due 2013 to “BB+.”The
ratings service assigned a “3” recovery rating to the company’s $1
billion multicurrency bank facility, and a “4” recovery rating to its
$400 million senior unsecured notes.All of the ratings were removed
from CreditWatch, where they were placed in December with negative
implications. The outlook is negative.S&P said it expects the tough
economic environment to continue to pressure Office Depot’s performance
this year.In addition, S&P said the company’s credit metrics have
weakened and further erosion is expected this year.Office Depot shares
fell 5 cents to $10.87 in afternoon trading

[Author]

April 16, 2008 at 2:29 PM