S&P lowers Appleton Papers

Standard & Poor's said it placed the BB- corporate credit rating on Appleton Papers Inc. on CreditWatch with negative implications.

"The CreditWatch placement follows Appleton's weaker-than-expected operating performance during the nine months ended Sept. 30, 2008, which was a result of lower sales volume in certain segments, higher input costs and startup costs associated with its West Carrollton mill upgrade," S&P analyst Andy Sookram said in a statement.

"The EBITDA cushion under its 4.5x maximum allowable total leverage ratio under its bank credit facilities has narrowed as a result," the analyst said.

Adjusted debt-to-EBITDA ratio was 5.7x as of Sept. 30.

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