Moody's cuts Appleton liquidity

Moody's Investors Service said it lowered the speculative grade liquidity rating of Appleton Papers Inc. to SGL-3 from SGL-2.

The downgrade reflects Moody's view that covenant cushion in the company's bank facilities will tighten substantially over the next 12 months.

However, the SGL-3 rating continues to reflect a view that liquidity will be adequate, supported by continued positive free cash flow. Moody's expects that Appleton will likely meet all its obligations through internal sources.

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