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.

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April 16, 2008 at 2:28 PM