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 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. MeadWestvaco Corp., a larger, diversified forest products company, is the company's primary competitor. Volumes in the U.S. have been declining about 9% per year because of the development of substitute technologies, and these declines are expected to continue, although Appleton's recent experience was less than this due to new account gains. The company expects to offset these declines with increased sales in
