Since July 2005, International Paper has been carrying out a major restructuring. In the process the company has sold US$9.7 billion worth of assets. IP plans to gain a total of US$11 billion through the sales of assets – more than 30% more than the companies first estimates.
IP had debts of US$13.3 billion at the end of June 2006. Management plans to use US$6-US$7 billion of its income from sales for debt reduction.
In September 2006, Standard & Poor’s Rating Services revised its outlook for International Paper to stable from negative. The company retained its ‘BBB’ credit rating.