The ratings on Delray Beach, Fla.-based Office Depot Inc. reflect the company's solid position in the North American office products industry, diverse distribution channels, recent operating improvement in its North America retail business, and adequate financial measures. However, the company continues to face a number of operational and economic challenges in its international operations. Office Depot is a leading supplier of office products, with $14.3 billion in sales in 2005. A little less than one-half of the company's revenues come from its North American retail operations, about 30% is generated from Business Service Group (or its mail-order and contract operations), and the remainder (24%) comes from its international operations. Office Depot's store base is 30% smaller than Staples Inc.'s North
