S&P rates new Georgia-Pacific notes BB+

Standard & Poor's said it assigned its BB+ senior unsecured debt rating to Atlanta-based Georgia-Pacific Corp.'s new $500 million 8% senior unsecured notes due 2024.

At the same time, S&P affirmed all of its ratings on the company.

The outlook is negative.

"Proceeds from the notes will be used to repay amounts outstanding under the company's bank credit facilities and/or its secured receivables facility and for general corporate purposes," said S&P credit analyst Cynthia Werneth.

S&P said the ratings reflect Georgia-Pacific's position as a leading forest products company with broad product diversity and good market and cost positions in tissue, disposable tableware, and containerboard.

These attributes are offset by more cyclical building products, pulp, and paper operations; aggressive debt leverage; asbestos-related outlays that may rise in coming years, but should remain manageable; and potentially significant environmental liabilities.

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