The ratings reflect Appleton Papers Inc.'s leading positions in niche specialty paper markets, a fairly stable cost base, limited product diversity, and an aggressive financial profile. Appleton Papers is the world's largest manufacturer of carbonless paper, which is used in multi-part forms such as invoices, credit card receipts, and packing slips. The industry is modestly cyclical and very concentrated, with Mead Corp., a larger, diversified forest products company, the company's primary competitor. U.S. volumes have been, and are expected to continue, declining about 9% a year due to the development of substitute technologies. The company expects to offset this decline with increased sales in the growing thermal paper market (point of sales receipts, labels, tickets, etc.), in which is it
