Polysindo gets BB-minus

Polysindo gets BB-minus

SYDNEY (Reuter): Standard & Poor's Corp said it had placed its
BB-minus corporate credit rating of Indonesian textile firm PT
Polysindo Eka Perkasa on creditwatch with positive implications.

The credit ratings agency said it had also placed the BB-minus
rating assigned to Polysindo's US$125 million 2001 global notes
on creditwatch with developing implications.

S&P said Polysindo was close to completing the first stage of
a major upgrade to its petrochemical production capability which
would provide manufacturing capacity for purified terephthalic
acid (PTA, the major raw material in polyester).

This would substantially increase production of polymer and
polyester chip feedstock for the company's expanded, staple-
fiber, production facilities, S&P said in a news release.

"The BB-minus rating assigned to Polysindo reflects the
positive integration of the company's petrochemical production
facilities with its well-established position in the polyester
fiber sector and efficient production close to the high-growth
southeast Asian markets," S&P said.

The establishment of petrochemical production gave Polysindo
greater control over the cost and quality for its major textile
raw material inputs, and was expected to lead to enhanced
earnings by retaining the PTA profit margin, S&P added.

Polysindo is the largest textile producer in Indonesia.