International Paper Co.

Our stable outlook reflects our expectation that positive pricing and volume momentum combined with the company's strong free cash flows will enable it to maintain debt leverage below 3x over the next 12-24 months and pro forma for divestitures and the spinoff of its paper segment. We could lower our ratings on the company if weak operating performance or leveraging events caused its adjusted debt to EBITDA to exceed 3.5x on a sustained basis. We could raise our ratings on the company if debt leverage improved to below 2.5x on a sustained basis and the company committed to financial policies supporting the improved credit metrics. U.S. real GDP growth of 6.5% in 2021 and 3.1% in 2022; Eurozone real GDP

...We expect International Paper's (IP) operating performance will improve through the remainder of 2021 on the back of healthy end-market demand and improved pricing. The company's operating performance was challenged in 2020 as the COVID-19 pandemic drove lower volumes and unfavorable price mix across operating segments. However, with early signs of a macro-economic recovery visible and COVID-19 vaccination programs taking place worldwide, we expect end-market demand to improve and remain healthy in fiscal 2021. In addition, we believe the company's pricing initiatives in the last quarter of fiscal 2020 will further strengthen its operating performance in 2021. However, we expect this to be partially offset by an expected loss of revenue due to multiple divestitures announced by the company during the year. As such, we expect a low-single-digit revenue growth in 2021. IP's financial leverage will likely remain below 3x through 2022 The company voluntarily paid down about $1.7 billion of...

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