S&P boosts OfficeMax

Standard & Poor's said it raised the corporate credit rating on OfficeMax Inc. to BB- from B+.

The outlook is stable.

This action reflects the company's improved credit metrics primarily due to lower corporate costs and the termination of its receivable securitization facility, which we treated as debt, the agency said.

According to S&P, the ratings on OfficeMax reflect the company's leveraged balance sheet, weak free cash flow track record, inconsistent historical operating performance and considerable challenge in improving its operations in a highly competitive office supply market led by more robust players such as Staples Inc. and Office Depot Inc.

The company's credit metrics, which are currently above average for current ratings, partially offset these negatives, the agency added.

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