The rating on Appleton, Wisc.-based Appleton Papers Inc. reflects Standard&Poor's Ratings Services assessment of the company's business risk position as "weak" and financial risk position as "highly leveraged" (as our criteria define these terms). Our view is that the paper manufacturer's financial risk profile will remain highly leveraged despite our expectation for slightly lower adjusted debt levels and EBITDA improvements. The rating also incorporates our opinion that the company maintains an "adequate" (under our criteria) liquidity position, given that it has no significant near-term debt maturities or financial maintenance covenant requirements. We continue to view Appleton's business risk profile to be weak, primarily due to the long-term decline in demand for the company's core carbonless paper products, which
