Leading positions in value-added specialty paper markets; Diverse end markets; Tax-advantaged corporate structure; and Relatively steady earnings and cash flow. Aggressive debt leverage; Declining carbonless paper demand; Reduced operating margins because of product mix changes; Raw material cost pressures; and Potential acquisition risks. The ratings on Appleton papers Inc. reflect its aggressive financial profile, declining carbonless paper volumes, lower operating margins from a shifting product mix, and potential acquisition risks. Leading market shares in certain specialty paper markets, diverse end uses, and relatively stable earnings and cash flows partially offset these factors. The Appleton, Wis.-based company is the world's largest manufacturer of carbonless paper, which includes multipart forms such as invoices, credit-card receipts, and packing slips. The industry is modestly
