Polysindo and Datakom get improved ratings
JAKARTA (JP): Standard & Poor's raised the ratings of both PT Polysindo Eka Perkasa and Polysindo International Finance Co BV yesterday to BB plus from BB and reclassified both entities as stable instead of positive.
Standard and Poor's said yesterday it had revised the ratings of both Polysindo's $125 million senior notes and $260 million guaranteed secured notes to BB+ from BB, and assigned a BB+ rating to Polysindo's $200 million secured notes.
The ratings of the $260 million and the $125 million notes were revised from positive to stable, it said.
The agency said Polysindo's improved rating was a result of the completion of the first stage of a major upgrading of the company's petrochemical production facilities.
The upgrading enables the company to produce purified terephthalic acid (PTA), the main raw material in polyester, and substantially increase its production of polymer and polyester chip feedstock for its expanded staple fiber production facilities, it said.
Successful commissioning and the profitable launching of Polysindo's PTA and polymer projects, and increased utilization of expanded staple fiber capacity, had improved cash flow and would strengthen the balance sheet and interest cover ratios, the rating agency said.
Datacom
The rating agency assigned a B-minus corporate credit rating to multimedia holding company Pratama Datakom Asia and the US$225 million senior notes issued by Datakom's finance subsidiary Pratama Datakom Asia BV.
The agency said it had assigned a B-minus long-term rating to the $225 million senior notes of Pratama Datakom Asia B.V., which are guaranteed by parent company Datakom.
The ratings reflect the Datakom's pay TV monopoly status in Indonesia, strong shareholder support and close relationship with News Corporation Limited, and the strong support of its shareholders, which include the founder of Bimantara and Salim Group, the agency said.
These strengths were offset by the uncertain demand for pay TV in Indonesia, startup risks related to the use of S-band technology in direct broadcasting satellite (DBS) pay TV services, and the company's heavy debt-usage, it said.
Datakom operates the only nationwide pay TV service through its principal subsidiary, PT Matahari Lintas Cakrawala.
PT Matahari Lintas Cakrawala offers an 18-channel digital C- band DBS TV service via leased transponder with about 25,000 subscribers.
The company plans to launch its own satellite later this year and deliver up to 40 channels of digital S-bank DBS programming throughout Indonesia by early 1998.
In 1996, Datakom's operation loss amounted to Rp 32 billion ($13.07 million), Standard and Poor's said. It also had debts of Rp 494 billion against Rp 8.4 billion of equity. (das)