Moody's upgrades APP

Moody's upgrades APP

JAKARTA (AFP): Moody's Investor Service on Monday upgraded the
senior secured and senior unsecured debt ratings of the giant
Asian Pulp and Paper Co. Ltd. (APP) and its subsidiaries because
of improved performance.

The New York-based service said about US$7.7 billion worth of
debt securities were affected by the upgrade to B-3, and
confirmed APP's "Caa1" preferred stock rating.

In addition it assigned a B3 senior unsecured rating to the
proposed $350-million issue of APP China group Ltd., "based on
the irrevocable and unconditional guarantee" of the world paper
giant.

Singapore-based APP is one of the world's largest paper
products companies, with pulp, paper tissue and packaging
production facilities in Indonesia, India and China.

Moody's said the upgrade was also affected by its recent
positive sovereign debt rating for Indonesia, where APP has key
subsidiaries including PT Indah Kiat Pulp and Paper Corp., PT
Pabrik Kertas Tjiwi Kimia.