Moody’s upgrades Office Depot to B1

Moody's Investors Service said it upgraded Office Depot, Inc.’s corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PD and senior unsecured bonds to B1 from B2.

The outlook is stable.

These actions conclude the review for upgrade that commenced on Feb. 4, 2015.

"Today's actions recognize the significant improvement in Office Depot's quantitative credit profile that has occurred over the past 18 months as the company has continued with the integration of OfficeMax, which it acquired in late-2013, as well as the favorable impact of our reduction in lease multiple to 5 times," Moody's vice president Charlie O'Shea said in a news release.

"With the acquisition by Staples now terminated, Office Depot will face increased competitive challenges, and we also believe there could be a liberalization of the company's historically-conservative financial policy."

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