BBB-plus for Sampoerna

BBB-plus for Sampoerna

SYDNEY (Reuter): Standard and Poor's Corp said it has assigned
its BBB-plus long-term local currency rating to Indonesia-based
P.T.Hanjaya Mandala Sampoerna.

S&P said the rating outlook is stable.

"The rating reflects the very strong brand image of
Sampoerna's core cigarette product, the successful development of
a range of support brands, the profitability of tobacco
operations, and the conservative financial profile," S&P said.

"These strengths are tempered by the clear dependence on one
main brand and an expansion plan which calls for further tobacco-
related investments in Indonesia and the Asian region," it said.

S&P said the rating fully reflects Sampoerna's credit
characteristics, and is unaffected by Indonesia's sovereign
credit risk.

S&P said it had also assigned its BBB long-term rating to the
US$200 million notes issued and guaranteed by Sampoerna's wholly-
owned subsidiary Sampoerna International Finance Co BV.

"Foreign currency obligations of Sampoerna are rated BBB
incorporating Indonesia's sovereign credit risk," S&P said.
S&P said the outlook on the ratings is stable.

"Continued success in building market share and operating
efficiency, combined with maintenance of current operating
measures, should reverse near-term debt increases, required to
fund capacity expansion," S&P said.