The ratings on Boca Raton, Fla.-based Office Depot Inc. reflect the highly competitive operating environment, expectations for continued weak demand, some regional concentration in its North America store base, weak credit protection measures, and profit levels well below industry leader Staples Inc. (BBB/Positive/A-2). Office Depot benefits from its well-recognized brand name and No. 2 position in the office products industry. Office Depot is a global supplier of office products and services, with a multichannel sales structure consisting of 1,292 retail stores, a contract sales force, Internet, and direct marketing catalogues. Standard&Poor's Ratings Services believes the company's restructuring actions, which have included distribution system consolidation, the closure of less profitable stores, and headcount reductions, have stabilized profit levels, which have
