Second-largest national office product player; Has good liquidity; and Credit metrics are consistent with current ratings levels. Recent same-store sales performance has been negative; and Recent operating cash flow generation trend has been weak. 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, and adequate financial measures for current ratings, given its business profile. Office Depot is a leading supplier of office products, with $15 billion in sales in 2006. A little less than one-half of the company's revenues come from its North American retail operations, about 30% is generated from the Business Service Group (or its mail-order and contract operations), and the remainder (24%)
