Moody's places Georgia-Pacific on negative review

Moody's Investors Service said it placed Georgia-Pacific Corp.'s long-term debt ratings on review for possible downgrade, including the Ba1 corporate family rating, Ba2 senior unsecured debt rating, Fort James Corp.'s Ba1 senior unsecured debt rating, G-P Canada Finance Co.' Ba2 backed senior unsecured debt rating and Fort James Operating Co.'s Ba1 backed senior unsecured rating.

Georgia-Pacific's speculative grade liquidity rating was affirmed at SGL-2.

The rating action follows the announcement that Koch Industries has agreed to purchase Georgia-Pacific in a transaction that values the company at some $20 billion.

Details of financing arrangements are not yet known, but Moody's anticipates the potential of material incremental debt to be serviced by Georgia-Pacific's cash flow stream.

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