S&P downgrades OfficeMax

New York City Standard Poor’s Ratings Services said Friday it lowered its corporate credit and senior unsecured debt ratings on OfficeMax to 'B' from 'BB-'. The recovery ratings on the company's senior unsecured debt remain unchanged at '4', indicating the expectation for average (30% to 50%) recovery in the event of a payment default. The outlook is stable.

OfficeMax had about $354.4 million of reported debt outstanding at Dec. 27, 2008.

"The rating action reflects our expectation that the protracted slowdown in consumer and corporate spending will continue to pressure operating performance within the company's retail and contract segments throughout 2009, and cause credit-protection measures to worsen from already weak current levels,” said Standard Poor's credit analyst Mark Salierno.