S&P may up Corporate Express

Standard & Poor's said it revised the CreditWatch implications of the BB- long-term corporate credit rating on Corporate Express NV back to positive from developing.

Ratings were placed on CreditWatch with positive implications on Feb. 19, following the initial €2.5 billion cash offer for its stock by Staples Inc. (BBB+/Watch negative/A-2) and revised the watch to developing implications after Corporate Express' proposed acquisition of Lyreco SA for €1.731 billion.

S&P said the latest revision reflects the recent announcement that Corporate Express will withdraw its bid for Lyreco, thereby removing potential downside from the debt component.

The agency said it expects to raise ratings upon completion of the deal, expected to close in July, when Staples' tender offer expires. S&P said it also expects to lower Staples' corporate credit rating to BBB from BBB+ and assign a stable outlook.

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