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.