Appvion Inc. recently announced the sale of its growing, high-margin micro-encapsulation business for $206 million. The company used $165 million of the proceeds to pay down first-lien debt. Appvion's remaining business segments have underperformed in 2015 due to weak demand and pricing pressure. We are affirming our 'B' corporate credit rating on the company. The negative outlook reflects the risk that we could lower the rating if Appvion's core paper business does not recover or liquidity becomes constrained. On Aug. 18, 2015, Standard&Poor's Ratings Services affirmed its 'B' corporate credit rating on Appvion Inc. The outlook is negative. The rating affirmation reflects our view that the sale of the Encapsys business is a credit-neutral event for Appvion. Appvion
