Good market position in carbonless and thermal papers; Adequate near-term liquidity; and Manageable near-term debt maturities. Long-term demand decline in carbonless paper volumes; Weak cash flow relative to total indebtedness; High debt leverage; and Some degree of customer concentration. The rating on Wisconsin-based Appleton Papers Inc. reflects our expectation that the paper manufacturer's financial risk profile will remain highly leveraged despite slightly lower adjusted debt levels and recent EBITDA improvements. The rating also incorporates our view of the company's adequate liquidity position, given that it has no significant near-term debt maturities or financial maintenance covenant requirements. We continue to view Appleton's business risk profile as weak, primarily due to the long-term decline in demand for the company's core carbonless paper
