S&P cuts Staples to stable

Standard & Poor's said that it revised the outlook on Staples Inc. to stable from positive and affirmed all of its ratings, including the BBB long-term and A-2 short-term corporate credit ratings.

The outlook revision to stable from positive reflects increasingly competitive industry conditions that are expected to continue for the remainder of the year, the agency said.

The ratings on Staples reflect the opinion that the company will maintain its satisfactory business risk profile as the No. 1 provider of office products in North America, the agency added.

The strong competitive position of Staples' delivery business, relatively efficient retail store base and satisfactory cash flow generation outweighs continued weak industry conditions and the competitive operating environment, S&P said.

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