S&P changes Appvion view to negative

Standard & Poor's said it revised its outlook on Appvion Inc. to negative from stable and affirmed the B corporate credit rating.

The outlook revision reflects weak third quarter 2014 performance relative to the agency’s expectations, largely driven by competitive pressures in the thermal paper market.

In addition, average pricing on carbonless paper declined from the addition of new products and operating expenses were higher than expected due to the complexity of the process to convert to a new base paper.

"The negative outlook reflects the potential for performance to fall short of our base case expectations, resulting in increasing cash shortfalls and deteriorating liquidity," S&P credit analyst Cheryl Richer said in a news release.

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