Moody's may cut six paper firms' ratings<\/p>\n
NEW YORK (Reuters): Moody's Investors Service has placed the
\nlong term debt ratings of six Indonesian paper companies under
\nreview for possible downgrade.<\/p>\n
This action is prompted by the economic and financial turmoil
\nthat sparked the downgrade of the sovereign rating of the
\nRepublic of Indonesia from Baa3 to Ba1, the rating company said.
\nRatings under review are:<\/p>\n
Asia Pulp & Paper group: APP Finance (II) Mauritius Ltd.
\nFloating Rate Perpetual Preferred; \"b3\", APP Global Finance (III)
\nCayman Ltd. Senior Unsecured Euronotes; B3 , APP Finance (VI)
\nMauritius Ltd. Guaranteed LYONs; B1, APP Global Finance Ltd.
\nFloating Rate Euronotes; B1, APP International Finance Company
\nB.V.: (all debt guaranteed by Asia Pulp and Paper Ltd.)<\/p>\n
Indah Kiat:<\/p>\n
PT Indah Kiat Pulp & Paper Co. (secured); Ba2
\nIndah Kiat Finance Mauritus Ltd. (guaranteed by Indah Kiat Pulp &
\nPaper); Ba3<\/p>\n
Indah Kiat Int'l Fin. Co. B.V. (guaranteed by Indah Kiat Pulp
\n& Paper) Senior Secured; Ba2 Senior Unsecured; Ba3<\/p>\n
PT Pabrik Kertas Tjiwi Kimia:<\/p>\n
Tjiwi Kimia International Finance Co. B.V. (guaranteed by PT
\nPabrik Kertas Tjiwi Kimia); Ba3, Tjiwi Kimia International
\nFinance Mauritius Limited (guaranteed by Tjiwi Kimia); Ba3<\/p>\n
PT Pindo Deli Pulp & Paper Mills:
\nPindo Deli Finance Mauritius Ltd. (guaranteed by PT Pindo Deli
\nPulp & Paper Mills); Ba3<\/p>\n
APRIL group:<\/p>\n
PT Inti Indorayon Utama Sr. Notes; Ba3
\nIndorayon International Finance (guaranteed by PT Inti Indorayon
\nUtama); Ba3<\/p>\n
PT Fajar Surya Wisesa:<\/p>\n
FSW International Finance (guaranteed by PT Fajar Surya
\nWisesa); B1.<\/p>\n
In its review, Moody's will focus on the implications of the
\ncurrent economic and political situation in Indonesia for the
\noperating outlook and financial flexibility of the pulp and paper
\nindustry.<\/p>\n
Factors to be evaluated include the impact of currency
\ndevaluation on cost structures and local market price
\nrealizations, as well as the outlook for paper product demand for
\ndomestic consumption and indirect exports.<\/p>\n
The rating agency will also assess the prospective supply-
\ndemand balance in East Asia in view of the significant planned
\ncapacity increases and reduced expectations for consumption in
\nthe region.<\/p>\n
Asia Pulp & Paper Company Limited, headquartered in Singapore,
\nis one of the world's largest paper companies. Its rated
\noperating subsidiaries, all located in Indonesia, are PT Indah
\nKiat Pulp & Paper. PT Pabrik Kertas Tjiwi Kimia, PT Pindo Deli
\nPulp & Paper Company, and PT Lontar Papyrus Pulp & Paper Company.<\/p>\n
In addition, Asia Pulp & Paper Company has several related
\nborrowing subsidiaries. APP Group companies produce bleached
\nhardwood kraft pulp and white paper, as well container board and
\nsome tissue.<\/p>\n
Asia Pacific Resources International Limited (APRIL), also
\nlocated in Singapore, has one Indonesian-based rated operating
\nsubsidiary PT Inti Indorayon Utama.<\/p>\n
The APRIL Group of paper companies produce pulp and rayon, and
\nare expanding into white paper. PT Fajar Surya Wisesa, located in
\nJakarta, is a small box board and container company. FSW
\nInternational Finance company is its rated finance subsidiary.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/moodys-may-cut-six-paper-firms-ratings-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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