S&P puts Office Depot on positive watch

Standard & Poor’s said it placed all of the ratings on Office Depot Inc., including its B- corporate credit rating, on CreditWatch with positive implications.

The CreditWatch placement follows news that Staples Inc. entered into an agreement to acquire all of the common shares of Office Depot, S&P said.

Staples expects to fund the transaction with about $4.3 billion of new debt and $2.1 billion of equity, the agency said.

The transaction is subject to shareholder and regulatory approvals, S&P said.

The agency said it could equalize the ratings on Office Depot with Staples, assuming Office Depot merges into Staples, with Staples being the surviving entity and all Office Depot’s debt is assumed by Staples, if not repaid at closing.

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