Leading positions in niche specialty paper markets. Competitive cost position. Meaningful vertical integration. Tax-advantaged corporate structure. Limited product and geographic diversity. Declining carbonless paper demand. High customer concentration. Aggressive financial profile. The ratings reflect Appleton Paper Inc.'s leading positions in niche specialty paper markets, a fairly stable cost base, limited product diversity, high customer concentration, and an aggressive financial profile. Appleton, based in Appleton, Wis., is the world's largest manufacturer of carbonless paper, which is used in multi-part forms such as invoices, credit card receipts, and packing slips. The industry is modestly cyclical and highly concentrated. MeadWestvaco Corp., a larger, diversified forest products company, is Appleton's primary competitor. Carbonless paper volumes in the U.S. have been declining by about 9%
