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, and adequate financial measures for current ratings, given its business profile. Office Depot is a leading supplier of office products, with $15 billion in sales in 2006. A little less than one-half of the company's revenues come from its North American retail operations, about 30% is generated from the 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 around 29% smaller than that of Staples Inc.'s North American store base, Office Depot's operating margins remain more than 400 basis points lower than
