S&P Places Staples (SPLS) on CreditWatch Negative; Notes Weak Q4 Performance
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Standard & Poor's Rating Services today placed all ratings, including the 'BBB' corporate credit rating, on Framingham, Mass.-based Staples Inc. (Nasdaq: SPLS) on CreditWatch with negative implications.
The company's operating performance was weaker than expected in the second half of 2013 and was particularly weak in the fourth quarter, and Staples' performance reflects the ongoing sales pressure the office supply industry has faced for a number of years.
"While Staples has made significant efforts to rationalize its store portfolio, implement cost-saving initiatives, and invest in its on-line and commercial businesses, we now believe the declines in its core office supply retail business may offset those efforts," said Standard & Poor's credit analyst Charles Pinson-Rose.
Standard & Poor's aims to resolve the CreditWatch shortly after Staples reports first quarter results--likely in late May or early June.
The company's operating performance was weaker than expected in the second half of 2013 and was particularly weak in the fourth quarter, and Staples' performance reflects the ongoing sales pressure the office supply industry has faced for a number of years.
"While Staples has made significant efforts to rationalize its store portfolio, implement cost-saving initiatives, and invest in its on-line and commercial businesses, we now believe the declines in its core office supply retail business may offset those efforts," said Standard & Poor's credit analyst Charles Pinson-Rose.
Standard & Poor's aims to resolve the CreditWatch shortly after Staples reports first quarter results--likely in late May or early June.
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