S&P affirms Office Depot de Mexico

Standard & Poor’s said it affirmed its BB global scale corporate credit rating on Office Depot de Mexico, SA de CV and affirmed the BB issue-level rating on the company’s $350 million senior unsecured notes with a recovery rating of 3.

The outlook on the corporate credit rating is stable.

“Despite less dynamism in the Mexican economy, a more cautious consumer following the implementation of Mexico’s fiscal reform, ODM’s revenue growth has contracted, and we believe this is the main challenge for the company in the next 12 months,” said S&P credit analyst Sandra Tinoco in a news release.

However, the company has continued to post positive free operating cash flow and maintained its “adequate” liquidity with ample cushion in its debt to EBITDA covenant, the agency said.

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