S&P rates Office Depot B, loan B+

S&P said it assigned its B corporate credit rating to Office Depot Inc. and assigned a B+ issue-level rating to Office Depot's proposed $750 million senior secured term loan. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 75%) recovery in the event of a payment default.

The outlook is negative.

“The ratings on Office Depot reflect the company's participation in the highly competitive and fragmented U.S. office supplies industry, which continues to experience a secular decline, as well as execution risks associated with its efforts to expand its business service offerings to include IT solutions,” the agency said in a news release.

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