We completed our review of Appleton's new capital structure following the settlement of its debt exchange offer, which we viewed as being tantamount to default. We raised the corporate credit rating on Appleton to 'B' from 'SD'. We assigned a 'CCC+' (two notches below the corporate credit rating) with a '6' recovery rating to the company's new $162 million second-lien secured notes due 2015. The stable outlook reflects the company's improved financial flexibility and our expectation that credit measures will strengthen over the next several quarters because of increased demand and cost-saving benefits. On Oct. 2, 2009, Standard&Poor's Ratings Services raised its corporate credit rating on Appleton, Wisc.-based specialty paper manufacturer Appleton Papers Inc. to 'B' from 'SD'.
