S&P assigns 'B-' to APP

S&P assigns 'B-' to APP

JAKARTA (JP): International rating agency Standard & Poor's
assigned a "B-" long-term rating yesterday to APP Finance (VII)
Mauritius Ltd.'s US$500 million convertible notes due April 2003.

Standard & Poor's said in a statement that the rating was on
credit watch with negative implications.

It said the notes were unconditionally guaranteed by parent
Asia Pulp & Paper Co. Ltd. (APP), a Singapore-based company owned
by the Indonesian Sinar Mas Group.

APP, rated "B-" with negative implications, is well-
established in several large-scale sites in Indonesia with
integrated operations in forestry management, pulp manufacturing,
fine paper and industrial paper manufacturing and paper
distribution. (rid)