Moody's affirms Weyerhaeuser

Moody's Investors Service said it affirmed Weyerhaeuser Co.'s Baa2 senior unsecured debt ratings and Prime-2 commercial paper ratings following the company's announcement that it has signed a definitive agreement to sell its containerboard and packaging operations to International Paper Co. for $6 billion.

The outlook remains negative.

Under the terms of the agreement, Moody's said that Weyerhaeuser will sell its containerboard and packaging operations which includes nine containerboard mills, 72 packaging locations, 10 specialty-packaging plants, four kraft bag and sack locations and 19 recycling facilities.

The transaction is subject to customary closing conditions including regulatory review and receipt of financing by International Paper, the agency noted, adding that the affirmation of Weyerhaeuser's ratings reflects the company's intent to apply most of the after-tax proceeds from the sale to reduce debt.

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