S&P ups OfficeMax outlook to positive

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

At the same time, the agency said it affirmed the ratings on the company, including the B+ corporate credit rating.

S&P noted that this action reflects OfficeMax's improved credit metrics.

While the company is facing some economic headwinds and still needs to overcome reinvestment and supply chain needs, management's turnaround initiatives have started to take traction and should continue to benefit the company's profitability levels over time, the agency said.

According to S&P, the ratings reflect OfficeMax's leveraged balance sheet, weak free cash flow track record, inconsistent historical operating performance and the considerable challenge the company faces in improving 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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