S&P rates International Paper notes BBB

Standard & Poor's said it assigned a BBB rating to International Paper Co.'s proposed 10-year and 30-year senior unsecured notes.

The outlook is stable.

The notes will be structurally subordinated to all indebtedness and other obligations of the company's subsidiaries, including indebtedness of Temple-Inland that will remain outstanding.

The company will acquire Temple-Inland Inc., S&P said.

The proceeds, together with other borrowings and available cash, are to be used to pay for the acquisition and fund the repayment of certain of Temple-Inland's existing credit facilities.

The ratings reflect the company's satisfactory business risk profile and its intermediate financial risk profile, S&P said.

The ratings also incorporate the company's entry into a definitive merger agreement to acquire Temple-Inland, the agency said.

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