NEW YORK (Standard&Poor's) May 17, 2006--Standard&Poor's Ratings Services said today its ratings and outlook on Delray Beach, Fla.-based Office Depot Inc. (BBB-/Stable/--) are not immediately affected by the company's announced plan to acquire Allied Office Products Inc. for an undisclosed amount. However, we feel the company has utilized much of the flexibility incorporated into current ratings, given its recent increase in share repurchase activity in combination with this acquisition. There is limited room in the current outlook for further sizable share repurchases or acquisitions, particularly if they are financed with debt. On May 15, 2006, Office Depot announced that its board of directors had authorized a $500 million share repurchase program. This was in addition to
