Moody's may cut Staples

Moody's Investors Service said it placed the Baa1 senior unsecured ratings of Staples, Inc. on review for downgrade.

The review results from Staples recent announcement that it obtained firm financing commitments for a $3 billion credit facility to acquire Corporate Express, the agency said.

Staples said it considers its cash reserves and revolving credit facility, in addition to this new credit facility, to be sufficient to finance the acquisition of Corporate Express, the agency said.

"While Staples' leverage is presently very modest, downward rating pressure would emanate from a large, debt-financed acquisition," Moody's senior analyst Charlie O'Shea said in a written statement.

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