December 13, 2012 / 9:30 PM / 5 years ago

TEXT-S&P: International Paper rtg unaffected by Temple-Inland deal

Dec 13 - Standard & Poor's Ratings Services said today its ratings on
International Paper Co. (BBB/Stable/--) and Georgia-Pacific LLC
(A/Stable/--) are unchanged following International Paper's announcement that it
agreed to sell its Temple-Inland Building Products division for $750 million to
Georgia-Pacific. The transaction is expected to be completed in the first
quarter of 2013 and doesn't 
significantly change our view of either company's financial risk assessments 
or prospective credit measures. We expect that the transaction will result in 
additional debt repayment for International Paper and that the company's 
metrics will improve such that leverage declines to approximately 3x by the 
end of 2013. For Georgia-Pacific, we believe the transaction will be funded in 
a manner that doesn't change our view of the company's strong liquidity 
position and overall creditworthiness. Georgia-Pacific's liquidity was 
estimated to be in excess of $3 billion as of Sept. 30, 2012.

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