Leading positions in value-added specialty paper markets; Diverse end users; Relatively stable and premium pricing compared to commodity papers; Competitive cost position; Tax-advantaged corporate structure; and Relatively steady earnings and cash flow. Declining carbonless paper demand; Improving, but still limited product and geographic diversity; Customer concentration risks; Aggressive financial policy; Potential integration risks associated with more aggressive acquisition strategy; and Declining operating margins due to shift in product mix. The ratings reflect Appleton Papers Inc.'s aggressive financial profile, declining carbonless paper volumes, expectations for lower operating margins due to a shifting product mix, and potential acquisition risks, partially offset by leading market shares in certain specialty paper markets, diverse end uses, and relatively stable earnings and cash flows. Appleton manufactures
