Great Neck, NY (PRWEB) March 10, 2010
After reviewing Office Depot's (ODP) financial results for its most recent fiscal period, Creditntell has upgraded Office Depot's credit rating to D1. While comparable store sales continued to erode, the upgrade reflects an improvement in the Company's EBITDA during its most recent fiscal year as well as improved liquidity to meet its short-term obligations.
Commenting on the upgrade to Office Depot's credit rating, Creditntell's Chief Operating Officer, Dennis Cantalupo, stated, "Although Office Depot's top line is still under pressure, the Company has made notable improvements in its free cash flow through improved inventory management, expense reductions and the scaling back of capital projects. The Company also strengthened its liquidity during fiscal 2009 via a convertible preferred stock issuance, which generated net proceeds of $327 million. Ultimately, although more work can be done to further improve its credit measures, it should be noted that in a very difficult retail environment Office Depot made significant strides. The operational improvements, coupled with more than adequate liquidity including $660 million in cash and $726 million in availability under the Company's $1.25 billion revolver at year-end, were the primary factors in our upgrade."
Please email pr (at) creditntell (dot) com if you would like a copy of our comprehensive credit analysis on Office Depot.
Additionally, Creditntell has recently published comprehensive analyses on Sears Holdings (SHLD), Bon-Ton (BONT), OfficeMax (OMX), Golfsmith (GOLF), Sport Chalet (SPCHA), HD Supply, and hhgregg (HGG). Please visit http://www.creditntell.com to request a free trial to view the reports.
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