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 in its North American retail business, and adequate financial measures. However, the company continues to face a number of operational and economic challenges in its international operations. Office Depot is a leading supplier of office products, with $14.3 billion in sales in 2005. A little less than one-half of the company's revenues come from its North American retail operations, about 30% is generated from Business Service Group (or its mail-order and contract operations),
