"Nevertheless, Moody's continues to factor the underlying cyclicality of the paper sector into its ratings, as most rated companies currently have weaker credit metrics compared to those expected for through-the-cycle credit profiles." However, Moody's understand that these weaker metrics are to some extent a result of a severe demand contraction in H1 2009. In light of weakening cash flow generation due to structural and cyclical elements, the robustness of a company's liquidity typically determines the extent of time that a company can withstand downward rating pressure, as well as Moody's ability to rate through a cycle. Moody's recognises that continued aggressive capacity reductions could be the basis for healthier pricing levels and a longer-term cash flow recovery for the sector.