Moody's may cut Office Max

Moody's Investors Service said it placed the Ba2 corporate family and probability-of-default ratings of Office Max, Inc. on review for downgrade and affirmed the SGL-2 speculative grade liquidity rating. Also on review are the corporate family and probability-of-default ratings at Ba2 and senior unsecured notes at Ba3.

The speculative grade liquidity rating of SGL-2 was affirmed.

The review results from softening in operating performance, as well as some degree of uncertainty surrounding the potential impact on Office Max's debt protection measures of the impact on the timber notes of the Lehman bankruptcy, according to the agency.

"Office Max is experiencing some erosion in its operating performance due to the macroeconomy, with the result it is approaching its rating triggers," Moody's analyst Charlie O'Shea said in a statement.

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