S&P lowers OfficeMax

Standard & Poor's said it lowered its corporate credit and senior unsecured debt ratings on OfficeMax Inc. and its subsidiary American & foreign Power Inc. to B from BB-.

The recovery ratings on the company's senior unsecured debt remain unchanged at 4, the agency said.

The outlook is stable.

"The rating action reflects its expectation that the protracted slowdown in consumer and corporate spending," said S&P credit analyst Mark Salierno, "will continue to pressure operating performance within the company's retail and contract segments throughout 2009 and cause credit protection measures to worsen from already weak current levels."

For the fiscal year ended Dec. 27, total debt to EBITDA increased to about 5x, compared with about 3.6x at the end of fiscal 2007, the agency said.

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