Standard&Poor's said today that Appleton Papers Inc.'s (BB/Stable/--) report of an 11% year-over-year decline in sales will not result in any change to its current ratings or outlook on the company. The ratings and outlook reflect expectations that volumes in the mature North American carbonless paper market will continue to fall as a result of the development of substitute technologies. Nevertheless, Appleton was able to prepay $20 million of its senior term loans in early Feb. 2002. Strong cost controls and restructuring benefits should allow the company to continue to generate meaningful levels of free cash flow for debt reduction.
