The ratings on Office Depot Inc. reflect the company's meaningful position in the North American office products industry, strong balance sheet, diverse distribution channels, and recent operating stabilization. These factors are somewhat mitigated by a decline in operations from 1999 to 2001 and the competitive nature of the office supply industry. Office Depot is a leading supplier of office products, with $11.5 billion in sales. The company operates about 860 office supply superstores in North America and about 160 stores internationally, mostly under joint-venture and licensing agreements. Office Depot also holds a leading position in the mail order and contract stationer businesses, which, combined, represent about 34% of the company's consolidated sales. Since the second half of fiscal 2001, Office
