S&P rates International Paper notes BBB

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

International Paper expects to use all or a portion of the net proceeds to repay up to $1 billion of the principal of its outstanding 2018 and 2019 notes.

S&P said the BBB rating reflects International Paper's position as the largest containerboard and corrugated products manufacturer in North America, good geographic and operating diversity and participation in the forest and paper products industry.

The rating and outlook also incorporate the agency's expectations for annual free cash flow of $1.8 billion to $2 billion, leverage of below 2.5x, and funds from operations to debt greater than 30% in 2014 to 2015.

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