Polysindo and Datakom get improved ratings
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)