Moody's: Staples unchanged

Moody's Investors Service said that the announcement by Staples, Inc. that it had offered to purchase Corporate Express for a total price of roughly $3.7 billion would have no immediate impact on its Baa1 long-term rating or stable outlook.

"At present, there is insufficient visibility with respect to the final outcome of this process to properly assess any potential impact on the rating or outlook. If a bid is formally accepted or the probably increases of a transaction being consummated and as the resulting capital structure begins to crystallize, the appropriate rating action - if any - will be taken," commented Moody's senior analyst Charlie O'Shea.

Also important will be Moody's view toward ongoing financial policy, specifically returns to shareholders for the two years following the potential acquisition.

The agency added that Staples' Baa1 rating considers its market-leading franchise in what is a very fragmented segment, with the three dedicated players accounting for less than 10% of overall revenues.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.