Second-largest national office product player; and Diverse channels of distribution. Sensitivity to cyclical economic downturns, and recent operating performance has been very weak; Some regional concentration within North American retail; Operating margins well below Staples, the industry leader; and Weaker credit protection measures as a result of declining performance. The ratings on Office Depot Inc. reflect the highly competitive operating environment, sensitivity to cyclical economic downturns, some regional concentration in its North America store base, weakened credit measures, and declining operating margins that are well below those of Staples Inc., the industry leader. Despite the company's market position as the second-largest supplier in the global office products industry and its diverse channels of distribution, operating performance has been substantially affected
