The ratings reflect Appleton, Wis.-based Appleton Papers Inc.'s aggressive financial profile, limited product diversity, declining carbonless paper volumes, and customer concentration risks, 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 multipart 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. Factored into the ratings is the continued decline in carbonless paper volumes in the U.S. at about 9% annually, because of the development of alternative technologies. The company has been partially offsetting these declines with double-digit
