S&P rates Appleton Papers notes B+

Standard & Poor's said it assigned Appleton Papers Inc.'s proposed $300 million first-lien notes due 2015 its issue-level rating of B+ and a recovery rating of 2, indicating an expectation of 70% to 90% recovery in the event of a default. The agency also said it affirmed its corporate credit rating at B.

The outlook is stable.

The stable outlook reflects expectations that the credit measures will improve over the next few quarter because of higher sales volumes as the United States economy recovers, S&P said.

The agency said it forecasts operating margins of about 11% and a debt-to-EBITDA ratio of more than 5x over the next several quarters.

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