S&P: Temple-Inland on positive watch

Standard & Poor's said it placed all of its ratings on Temple-Inland Inc., including the BBB- corporate credit rating, on Creditwatch with positive implications.

"The Creditwatch placement reflects the meaningful debt reduction Temple-Inland achieved in 2009 and prospects for further debt reduction to meet the company's leverage target of debt to capital in the 35% to 40% range," said S&P credit analyst Pamela Rice.

The receipt of about $175 million of alternative-fuel-mixture tax credits in 2009 boosted the company's ability to reduce debt, S&P said, adding that Temple-Inland also generated $335 million of free cash flow, excluding the credits, which enabled it to reduce total adjusted debt to $1.1 billion at Dec. 31 from almost $1.6 billion a year earlier.

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