Moody's: International Paper unaffected

Moody's Investors Service said that International Paper Co.'s definitive merger agreement to acquire Temple-Inland Inc.'s shares for $3.7 billion has no impact on International Paper's Baa3 rating or stable outlook.

Factors supporting the current Baa3 rating include the strong cash flow that the companies generate from their low-cost and highly integrated asset base, the complementary nature of the companies' containerboard business which should allow the company to realize the $300 million of targeted synergies within two years, the modest amount of debt that International Paper plans to use to fund the acquisition and its track record in deleveraging quickly after making an acquisition, Moody's said.

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