The 'B' rating on Appleton, Wis.-based Appleton Papers Inc. reflects the company's highly leveraged financial risk profile, as exhibited by its adjusted leverage in excess of 7x, which is somewhat mitigated by its manageable near-term debt maturities and our view of its liquidity as adequate. In addition, the rating reflects Standard&Poor's Ratings Services' assessment of the company's weak business risk 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 incorporate our expectation that Appleton's sales will continue to increase over the next year, as a
