Indorayon rating withdrawn

Indorayon rating withdrawn

JAKARTA (AFX-ASIA): Moody's Investors Service said it affirmed
and then withdrew the 'Ca' rating on PT Inti Indorayon's US$150
million senior notes and $110 million guaranteed notes.

It said the company's operations have been seriously affected
by the closure of its pulp mill at Porsea, North Sumatra. Inti
Indorayon has since 1999 suspended all debt repayment.

"The rating reflects the low expected recovery rate and the
apparent uncertainty in resolving creditors' claims under
Indonesian law," it said.

At the same time, Moody's withdrew the rating following the
notes' maturity in 2000 and 2001 respectively.

"Although the notes remain unpaid, Moody's regards it as
unlikely that a debt restructuring agreement will be reached in
the near future, given the lack of progress on the resumption of
the mill's production.

"In Moody's opinion, it remains uncertain as to when the mill
will be re-opened in view of the economic and social conditions
in Indonesia."