Fitch affirms International Paper

Fitch Ratings affirmed the ratings of International Paper's senior unsecured debt at BBB and its commercial paper at F2.

The outlook is stable.

Fitch said the rating takes into account the improvement in business conditions in International Paper's paper and packaging markets and the stability of its forest products business, which has been the company's earnings driver.

However, Fitch said International Paper remains saddled with legacy debt from the acquisitions of Champion and Shorewood and not much is expected in the way of debt reduction from operating cash flow this year.

If the recovery is weaker than expected or if the company does not continue to pay down debt balances, a negative revision to the ratings may occur. In addition, any further large debt-financed expansion would postpone financial improvement and possibly result in a negative rating revision.

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