OREANDA-NEWS. S&P Global Ratings today assigned its 'BBB' issue-level ratings to Memphis, Tenn.-based International Paper Co.'s proposed senior unsecured notes due 2027 and 2047. The company will use the proceeds from these notes, along with bank borrowings, borrowings under its committed credit facilities, and available cash, to fund its proposed acquisition of Weyerhaeuser's pulp business.

Our 'BBB' corporate credit rating on International Paper reflects the company's position as the largest containerboard and corrugated products manufacturer in North America, its good geographic and operating diversity, and its growing presence in the industrial and consumer packaging markets. The rating also incorporates our expectation that the company's credit measures will remain in our intermediate category over the next two years, specifically an adjusted debt-to-EBITDA leverage metric of about 2.5x-3.5x. While we expect that International Paper's leverage metric will increase above this range following the close of the acquisition, we believe management will undertake some debt reduction, which--along with additional EBITDA from the acquisition--should restore the company's adjusted debt-to-EBITDA metric to around 2.5x-3.5x (the appropriate range for the current rating).