On Nov. 20, 2007, Standard&Poor's Ratings Services revised its outlook on Office Depot Inc. to negative from stable. At the same time, we affirmed the 'BBB-' corporate credit and senior unsecured ratings. While the company has good liquidity and is up to date with its financial filing requirements, recent operating performance has been weaker than anticipated. Additionally, we anticipate debt leverage will deteriorate to around 3.1x by the end of the year, which will be weak for current ratings. The ratings on Delray Beach, Fla.-based Office Depot 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
