The ratings on Appleton, Wis.-based Appleton Paper Inc. reflect its aggressive financial profile, limited product diversity, declining carbonless paper volumes, and high customer concentration, partially offset by limited competition in certain specialty paper markets, a fairly stable cost base, and reliable cash flows. 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 highly concentrated. MeadWestvaco Corp., a larger, diversified forest products company, is Appleton's primary competitor. As expected in the ratings, carbonless paper volumes in the U.S. have been declining by about 9% annually for the last few years because of the development of alternate technologies, and this trend
