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.