S&P upgrades Polysindo rating to 'BB'<\/p>\n
JAKARTA (JP): Standard & Poor's raised its corporate rating on
\nPT Polysindo Eka Perkasa (Polysindo) to 'BB' from \"BB minus' and
\ntook the rating off its CreditWatch list.<\/p>\n
The Melbourne office of the international rating agency
\nannounced yesterday that the rating on the US$260 million senior
\nsecured notes issued by Polysindo International Finance Co. B.V.,
\nguaranteed by parent company Polysindo, was also raised to 'BB'
\nfrom 'BB minus'.<\/p>\n
It said, however, that the rating on the remaining unsecured
\nnotes due in 2001 was downgraded to 'B plus'.<\/p>\n
Polysindo is close to completing the first stage of a major
\nupgrade in its petrochemical production capability.<\/p>\n
The upgrade will provide a manufacturing capacity for purified
\nterephthalic acid (PTA, the major raw material in polyester) and
\nsubstantially increase its production of polymer and polyester
\nchip feedstock for the company's expanded, staple-fiber
\nproduction facilities.<\/p>\n
Funding for the initial stages of the $615-million expansion
\nprogram came from the company's operating cash flow and debt, the
\nrating agency said.<\/p>\n
An increasing portion of the group's debt is secured by major
\nproject assets. Existing investors in the group's $125 million
\nglobal note issue were offered an exchange which would
\neffectively secure the borrowings against the major project
\nassets.<\/p>\n
\"A high portion of bondholders have consented to the exchange.
\nHowever, a small proportion of bonds remain unsecured, and the
\nrating of these obligations has been downgraded to 'B+',
\nrepresenting a two-notch differential from the secured rating,\"
\nthe rating agency said.<\/p>\n
The 'BB' rating assigned to Polysindo reflects the prospective
\nintegration of the company's petrochemical production facilities
\nwith its established position in the polyester fiber sector, the
\nagency said. (hen)<\/p>",
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