Moody's reviews Office Depot

Moody's Investors Service said it placed Office Depot, Inc.'s Ba1 corporate family rating, Ba1 probability-of-default rating and Ba2 senior note rating on review for downgrade.

The review is in response to continued softness in the company's operating performance through the third quarter, according to the agency. The SGL-3 speculative grade liquidity rating was affirmed.

"The California and Florida markets, in which Office Depot has a disproportionate share of its revenues, continue to struggle from a macroeconomic perspective, particularly housing and its related segments, which are key small business markets for Office Depot," Moody's Senior Analyst Charlie O'Shea said in a written statement.

The affirmation of Office Depot's SGL-3 speculative grade liquidity rating considers that despite revenue and profit declines, liquidity remains adequate.

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