Office Depot to slow store openings, cut jobs

ATLANTA, July 30 (Reuters) - Office supply retailer Office Depot Inc (ODP.N: Quote, Profile, Research, Stock Buzz) said on Wednesday that it is cutting its store-opening plans and slowing its remodeling efforts to cut costs and reduce capital spending as the tough U.S. economy pressures sales.

The retailer also said during a conference call that it was reducing its North American staff and had offered a voluntary exit program for some employees.

Company executives said the chain will open less than 15 stores for the balance of this year and plans to open a total of 45 stores for 2009.

Source: Reuters

Office Depot Credit Rating Cut

SAN FRANCISCO (Thomson Financial) - Standard & Poor's Ratings Services on Tuesday lowered its corporate credit rating on Office Depot Inc. to 'BB+' from 'BBB-'.

The outlook is negative.

The agency also removed all of the company's debt ratings from creditwatch with negative implications.

'The ratings downgrade is based on the decline in operating performance in both the North America retail and business solutions segments, and expectations that challenging economic trends will continue to pressure performance in fiscal 2008,' said S&P credit analyst Mark Salierno in a statement.

Shares of Delray Beach, Fla.-based Office Depot fell a penny to $10.91.

Source: Forbes