Fitch: Office Depot de Mexico view to negative

Fitch Ratings said it affirmed Office Depot de Mexico SA de CV's long-term local currency and foreign currency issuer default ratings at BB+ and revised the outlook to stable from negative.

Fitch said the outlook revision reflects the important reduction of the company's debt as well as the mitigation of the foreign exchange risk related to its debt after the $200 million cash capital increase from its shareholder Grupo Gigante and the make-whole call of the $350 million senior notes on Dec. 19.

On Dec. 19, Office Depot de Mexico prepaid its dollar-denominated debt with a combination of Mexican peso-denominated debt, cash and a capital increase from Grupo Gigante.

On a pro forma basis, the company will reduce its debt to nearly Ps. 3 billion from the Ps. 6.8 billion in September, for an adjusted debt to EBITDAR ratio of 2.7 times from the 4.2 times on Sept. 30, the agency explained.

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