On Dec. 15, 2008, Standard&Poor's Ratings Services lowered its ratings on Boca Raton, Fla.-based Office Depot Inc., including its corporate credit rating, to 'BB-' from 'BB'. We also lowered the rating on the company's $400 million of senior unsecured notes due 2013 to 'B+' from 'BB-'. The recovery rating on these notes remains unchanged at '5', indicating the expectation for modest (10%-30%) recovery in the event of a payment default. The outlook is negative. The rating change is based on our expectation that deteriorating macroeconomic conditions and the continued slowdown in consumer and corporate spending will lead to further near-term erosion in operating performance within the company's North American Retail Division and Business Solutions Division (BSD) through the
