Moody's cuts Staples term loan to B1

Moody's Investors Service said it downgraded the secured term loan of Staples, Inc. to B1 from Ba3.

"The downgrade of the term loan to B1 from Ba3 follows application of our loss given default methodology to the reconstituted capital structure," Moody's vice president Charlie O'Shea said in a news release.

"The combination of the $200 million increase to the term loan and $300 million decrease to the B3 rated senior unsecured notes reduces the support for the term loan to the point that the prior Ba3 rating is no longer sustainable."

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