moderate-high - AEC segment directly tied to commercial aviation demand which correlates with GDP growth and business travel recovery. MC segment exposed to industrial production and packaging demand, though tissue/hygiene products provide some defensive characteristics. Current negative ROE reflects aerospace production disruptions rather than fundamental business model issues.

Moderate impact through two channels: higher rates increase borrowing costs on $700M+ debt (0.65x D/E), adding ~$5-10M annual interest expense per 100bps rate increase. More significantly, rising rates pressure aerospace OEM financing costs and airline capital availability, potentially dampening aircraft order rates and production schedules that drive AEC revenue 12-24 months forward.

value - Recent 28.9% one-year decline followed by 39.2% three-month recovery suggests deep value investors betting on aerospace margin recovery and normalized 12-15% operating margins. 8.0% FCF yield attractive to value-oriented funds, though negative ROE deters quality-focused growth investors. Elevated volatility from aerospace cycle exposure and binary program outcomes attracts event-driven and turnaround specialists.