2.31%C 7.40 5.37%QQQQ 27.81 2.83%
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NEW YORK - Standard & Poor's Ratings Services lowered its short-term rating on International Paper Co. to "A-3" from "A-2," after the company closed its acquisition of Weyerhaeuser Co.'s containerboard packaging and recycling business for $6 billion in cash.
"We consider the willingness to fund such a large acquisition with debt to be aggressive, considering the current economic slowdown in the U.S. and significant cost inflation," Standard & Poor's credit analyst Pamela Rice said in a statement late Monday.
In May, International Paper set an offering of senior notes at $3 billion and said it would use the proceeds to help fund the buyout of the Weyerhaeuser unit.
But S&P said that, in the long term, it believes the acquisition will increase the International Paper's market share and business diversity. The credit rating agency affirmed its "BBB" long-term corporate credit and senior unsecured debt ratings on the Memphis, Tenn.-based paper products company.
The outlook is "Negative."
Shares of International Paper fell 30 cents to $28.23 in afternoon trading.
U.S. stocks were mixed on Thursday after retailers reported mostly disappointing sales while other big-name companies announced layoffs and Europ...
China markets opened lower on Tuesday morning as the investors' confidence hit by the signals that global recession are deepening.
The markets have spoken: risk aversion is still the name of the game and that was obvious since the beginning of the week.
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