The 'B' corporate credit rating on Wisconsin-based Appleton Papers Inc. reflects our view that the paper manufacturer's financial risk profile will remain "highly leveraged," despite our expectation for slightly lower debt levels and EBITDA improvement. The rating also incorporates our opinion that the company maintains "adequate" liquidity, given that it has no significant near-term debt maturities or financial maintenance covenant requirements. We continue to view Appleton's business risk to be "weak," primarily because of the long-term decline in demand for the company's core carbonless paper products, which account for about half of its sales. Appleton is an employee-owned firm and one of two primary manufacturers of carbonless paper, which is used for multipart forms such as credit card receipts, invoices,
