Moody's upgrades APP rating

Moody's upgrades APP rating

SINGAPORE (Dow Jones): Moody's Investors Service Inc. said
Friday it placed its Caa1 ratings of the Indonesia-based Asia
Pulp & Paper Company Ltd. its subsidiaries on review for possible
upgrade.

A ratings upgrade would affect about US$7 billion worth of
debt securities issued by the Singapore-listed company.

Moody's said its review was prompted by the gradual
improvement in the Indonesian economy.

The ratings agency recently upgraded Indonesia's ceiling for
bank deposits and improved its bond and deposit ceilings outlook
to positive.

Moody's also said APP group benefits from the weak domestic
currency since it generates a large amount of foreign currency
revenue and most of its costs are in the local currency, rupiah.