Polysindo and Datakom get improved ratings<\/p>\n
JAKARTA (JP): Standard & Poor's raised the ratings of both PT
\nPolysindo Eka Perkasa and Polysindo International Finance Co BV
\nyesterday to BB plus from BB and reclassified both entities as
\nstable instead of positive.<\/p>\n
Standard and Poor's said yesterday it had revised the ratings
\nof both Polysindo's $125 million senior notes and $260 million
\nguaranteed secured notes to BB+ from BB, and assigned a BB+
\nrating to Polysindo's $200 million secured notes.<\/p>\n
The ratings of the $260 million and the $125 million notes
\nwere revised from positive to stable, it said.<\/p>\n
The agency said Polysindo's improved rating was a result of
\nthe completion of the first stage of a major upgrading of the
\ncompany's petrochemical production facilities.<\/p>\n
The upgrading enables the company to produce purified
\nterephthalic acid (PTA), the main raw material in polyester, and
\nsubstantially increase its production of polymer and polyester
\nchip feedstock for its expanded staple fiber production
\nfacilities, it said.<\/p>\n
Successful commissioning and the profitable launching of
\nPolysindo's PTA and polymer projects, and increased utilization
\nof expanded staple fiber capacity, had improved cash flow and
\nwould strengthen the balance sheet and interest cover ratios, the
\nrating agency said.<\/p>\n
Datacom<\/p>\n
The rating agency assigned a B-minus corporate credit rating
\nto multimedia holding company Pratama Datakom Asia and the US$225
\nmillion senior notes issued by Datakom's finance subsidiary
\nPratama Datakom Asia BV.<\/p>\n
The agency said it had assigned a B-minus long-term rating to
\nthe $225 million senior notes of Pratama Datakom Asia B.V., which
\nare guaranteed by parent company Datakom.<\/p>\n
The ratings reflect the Datakom's pay TV monopoly status in
\nIndonesia, strong shareholder support and close relationship with
\nNews Corporation Limited, and the strong support of its
\nshareholders, which include the founder of Bimantara and Salim
\nGroup, the agency said.<\/p>\n
These strengths were offset by the uncertain demand for pay TV
\nin Indonesia, startup risks related to the use of S-band
\ntechnology in direct broadcasting satellite (DBS) pay TV
\nservices, and the company's heavy debt-usage, it said.<\/p>\n
Datakom operates the only nationwide pay TV service through
\nits principal subsidiary, PT Matahari Lintas Cakrawala.<\/p>\n
PT Matahari Lintas Cakrawala offers an 18-channel digital C-
\nband DBS TV service via leased transponder with about 25,000
\nsubscribers.<\/p>\n
The company plans to launch its own satellite later this year
\nand deliver up to 40 channels of digital S-bank DBS programming
\nthroughout Indonesia by early 1998.<\/p>\n
In 1996, Datakom's operation loss amounted to Rp 32 billion
\n($13.07 million), Standard and Poor's said. It also had debts of
\nRp 494 billion against Rp 8.4 billion of equity. (das)<\/p>",
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"sponsor": "Okusi Associates",
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