The 'B' rating on Appleton, Wis.-based Appleton Papers Inc. reflects the company's high debt leverage as exhibited by its current leverage in excess of 10x, despite its manageable near-term debt maturities and improved sources of liquidity over the next 12 months following the recently completed sale of its performance packaging business. In addition, the rating reflects Standard&Poor's Ratings Services' assessment of the company's weak business profile, which incorporates Appleton's ongoing efforts to make up for some of the long-term demand decline in its carbonless paper business through new product development, offset by its good market position and diverse end uses for its products. The rating and outlook incorporates our expectation that sales for Appleton's carbonless and thermal papers
