NEW YORK (Standard&Poor's CreditWire) Jan. 3, 2001--Standard&Poor's today affirmed its triple-'B'-minus corporate credit and senior unsecured bank loan ratings and its double-'B'-plus subordinated debt rating on Office Depot Inc. The outlook is stable. The ratings affirmation follows Office Depot's announced restructuring charge in the range of $280 million to $300 million to close 70 underperforming stores, reduce stock-keeping units (SKUs), write-down goodwill associated with its Japanese joint venture, and write-down certain impaired investments in Internet ventures. The cash impact of the charge will be about $100 million. Standard&Poor's anticipated these actions and believes the closing of underperforming stores should have a positive effect on earnings and cash flow protection once the plan is completed.
