Second-largest national office product player; Has good liquidity; and Generates good operating cash flows. International operations continue to face challenges. The ratings on Delray Beach, Fla.-based Office Depot Inc. reflect the company's solid position in the North American office products industry, diverse distribution channels, recent operating improvement, and adequate financial measures. However, the U.S. office supply industry is mature, causing key players to increase their focus on new, riskier markets, particularly in Europe. Office Depot is a leading supplier of office products, with $13.6 billion in sales in 2004. The company also holds a leading position in the U.S. mail-order and contract stationer businesses, which together represent about 30% of the company's consolidated sales. North American retail same-store sales grew
