S&P ups OfficeMax outlook stable

Standard & Poor's said it revised the outlook for OfficeMax Inc. to stable from negative.

At the same time, the B+ corporate credit rating and other ratings were affirmed, S&P added, noting that this action reflects the company's improved profitability and cash flow generation, as management's turnaround initiatives have started to take traction.

According to the agency, OfficeMax's turnaround strategy has been targeting improvements in the company's supply chain and corporate infrastructure, cost savings initiatives to boost operating margins and a remerchandising initiative to attract more profitable business and middle-market customers in both its contract and retail operations.

S&P added that the ratings reflect OfficeMax 's weak credit metrics, inconsistent operating and cash flow track record and the still-considerable challenge of turning around its operations in a highly competitive office supply market led by more robust players such as Staples Inc. and Office Depot Inc.

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