S&P corrects Staples issue ratings

S&P said it corrected the issue-level ratings on Staples Inc.'s senior unsecured notes due in 2018 and 2023 that were issued prior to the leveraged buyout transaction by Sycamore Partners by lowering the issue-level rating on the notes to B- from BBB- and assigning a 6 recovery rating.

The agency said that due to an error, it did not lower the issue-level ratings or assign recovery ratings on the notes following the closing of the leveraged buyout transaction on Sept. 12.

All other ratings and the stable outlook on Staples are unchanged.

“We initially expected the bonds to be fully repaid with the closing of the transaction. However, the notes remained outstanding after the closing of the transaction, and we did not adjust these issue-level ratings based on the B+ corporate credit rating,” the agency said in a news release.

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