New York, June 05, 2013 -- In a comment published earlier today, Moody's Investors Service stated that Office Depot's announcement on June 4, 2013 that it had agreed to sell its 50% stake in Latin American Joint Venture Office Depot de Mexico S.A. de C.V. to its partner Grupo Gigante, S.A.B. de C.V. (GIGANTE.MX) for roughly $690 million was a credit positive for the company. "Assuming approvals from shareholders are received, and the company deploys the approximately $550 million in net after-tax proceeds to debt repayment as publicly announced, this transaction will be positive for debtholders and will also result in an enhanced liquidity profile for Office Depot," stated Moody's Senior Analyst Charlie O'Shea. "While it has no immediate impact on the company's B2 rating or the developing outlook as these are presently driven primarily by still-challenged operating performance and issues surrounding the potential merger with OfficeMax (B1, developing), we believe this is definitely a positive action for the company."
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