Moody’s might lift Office Depot

Moody's Investors Service said it placed all ratings of Office Depot, Inc., which includes the B2 corporate family rating, on review for upgrade.

"Today's review action is due to Office Depot's announcement this morning that it was being acquired by Staples, Inc. (Baa2/Prime-2, ratings under review for downgrade) in a fully-priced transaction valued at over $6 billion via a combination of cash/debt and stock," Moody's vice president Charlie O'Shea said in a news release.

"While there is much work remaining, including among other things regulatory review in both the U.S. and Europe, in the event this transaction closes largely along the lines outlined earlier today, an upgrade of several notches is likely."

"The review will also consider the extent to which Staples provides a guarantee or other form of parental support should Office Depot's existing debt remain outstanding after the transaction is completed," O’Shea added in the release.

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