Moody's: IP unchanged

Moody's Investors Service said that International Paper Co.'s tender offer to acquire Temple-Inland Inc.'s shares for $3.5 billion has no impact on the company's Baa3 rating or stable outlook.

Factors supporting the current Baa3 rating include the strong cash flow that IP and TIN generate from their low cost and highly integrated asset base, the complementary nature of IP and TIN's containerboard business, which should present opportunities to realize cost synergies, the modest amount of debt that IP plans to use to fund the acquisition and IP's track record in deleveraging quickly after making an acquisition, the agency added.

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