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 Aggressive acquisition strategy; Higher than expected debt leverage; Declining carbonless paper demand; More competitive pricing than expected; Raw material cost pressures; and Declining operating margins because of shift in product mix The ratings reflect Appleton Paper Inc.'s aggressive financial profile, declining carbonless paper volumes, expectations for lower operating margins because of 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. The Appleton, Wis.-based company is the world's largest
