On Feb. 2, 2009, Standard&Poor's Ratings Services lowered its ratings on Appleton Papers Inc.; the corporate credit rating was lowered to 'B' from 'BB-'. All ratings, including the issue-level ratings, remain on CreditWatch with negative implications, where they were initially placed on Dec. 5, 2008. The downgrade stems from our concerns about Appleton's weakening credit measures during a difficult operating environment, its likely tightened liquidity position, and its ability to remain in compliance with its financial covenants over the next several quarters. We expect the operating environment will remain challenging through 2009 as consumers continue to rein in discretionary spending in the face of an economic recession. As a result, we believe the demand for the company's paper
