Moody's puts Office Depot ratings on review

Office Depot has been plagued with slowing sales amid the economic downturn. On Tuesday the Delray Beach, Fla.-based company said it expects fiscal second-quarter same-store sales will fall nearly 10 percent.

Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.

Moody's said its decision to review Office Depot stems from its operating performance in early 2008.

"Office Depot continues to have difficulty regaining traction in its key California and Florida markets, and there appears to be limited visibility with respect to when these markets will recover," said Moody's Senior Analyst Charlie O'Shea in a statement.

The company's senior unsecured rating is currently at "Baa3," one notch above non-investment grade.

Office Depot shares rose 24 cents to $7.44 during midday trading.