Moody's rates WRKCo notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to WRKCo Inc.'s proposed $1 billion senior unsecured notes maturing in 2028 and 2032.

The company is formerly known as WestRock Co., Moody's noted.

The notes will be unsecured senior obligations of WRKCo and rank equally with the company's existing unsecured senior indebtedness, the agency said.

The proceeds will be used to repay existing debt, including bonds due in 2019 and 2020, Moody's said, as well as a portion of term loan and commercial-paper outstanding.

The company's Baa2 issuer rating and senior unsecured rating, prime-2 short-term rating and stable outlook are unchanged.

The ratings benefits from the company's leading North American market positions in corrugated and consumer paper packaging, Moody's said.

The ratings also consider its low cost vertically integrated operations and strong liquidity, the agency said.

The ratings are constrained by the company's moderate expected adjusted leverage of 2.9x in 2020, Moody's said.

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