Moody's rates Staples shelf Baa2

Moody's Investors Service said it assigned a provisional Baa2 rating to the senior unsecured shelf registration of Staples, Inc.

The outlook is stable.

Staples has issued $2 billion of bonds under this facility to reduce the original $3 billion bridge loan that served as back-up to the commercial paper program that helped finance its acquisition of Corporate Express, NV, the agency said, adding that future drawings will likely be used to term out commercial paper borrowings or otherwise manage debt maturities.

Moody's said the Baa2 rating considers Staples' position as the world's largest dedicated retailer of office supplies, its solid liquidity and a financial policy that is balanced with respect to treatment of debtholders.

The rating also recognizes the fierce competition and highly fragmented nature of the office supply segment, integration risks related to Staples' cross-border acquisition of Corporate Express and the difficult macroeconomic environment in the United States, the agency said.

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