Fitch: Staples cut to negative

Fitch Ratings said it has affirmed its long-term issuer default rating on Staples, Inc. at BBB. The outlook has been revised to negative from stable.

As of Aug. 3, Staples had $2 billion of debt outstanding.

According to the agency, the affirmation reflects Staples' leadership position in the mature retail and commercial office product supply industry, and diversified model by channel and customer, as well as ongoing debt repayment and solid free cash flow.

The rating also reflects the company's soft sales and earnings trends that are due to the challenging macroeconomic environment, the secular trend from paper to digital, and significant operating challenges in Europe, the agency stated.

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