Moody's ups OfficeMax

Moody's Investors Service said it upgraded the senior implied rating of OfficeMax Inc. to Ba1, upgraded the rating on the 7% senior notes due November 2013 to Baa2 and assigned a speculative grade liquidity rating of SGL-2. The outlook is stable.

Moody's upgraded OfficeMax's senior implied rating to Ba1 from Ba2, senior unsecured $560 million bank facility to Ba1 from Ba2, senior notes due 2013 to Baa2 from Ba2, adjustable conversion-rate equity units to Ba1 from Ba2, issuer rating to Ba1 from Ba2, senior unsecured shelf to prospective Ba1 from prospective Ba2 and preferred shelf to prospective Ba2 from prospective B1.

The upgrade considers the improvement in debt protection measures following the de-levering as a result of the distribution of proceeds from OfficeMax's sale of its forest products division, balanced by the risks of becoming a 100% retail and wholesale office products company, according to Moody's.

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