Moody's: Office Depot view stable

Moody's Investors Service said it affirmed Office Depot, Inc.'s senior unsecured rating at Baa3 and changed the outlook to stable from positive.

The agency said the stable outlook results from deterioration in Office Depot's operating performance over the second half of 2007 and the likelihood that the first half of 2008 would be challenged as well.

"In the event Office Depot does not ensure continued availability of its $1 billion bank credit facility by expeditiously obtaining any necessary covenant waivers from its banks, downward rating pressure would build," Moody's senior analyst Charlie O'Shea said in a written statement.

Office Depot's Baa3 rating considers its credit metrics, which remain solidly investment grade, Moody's said, and its firm No. 2 position in the office supplies segment, balanced by the difficult macroeconomic-fueled operating environment in the United States.

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