S&P lowers ratings of 11 RI companies

S&P lowers ratings of 11 RI companies

MELBOURNE (Reuters): Standard & Poor's Corp said yesterday
that it had cut the credit ratings of 11 Indonesian corporates,
with all ratings on creditwatch with negative implications.

The 11 companies are Asia Pulp and Paper Co Ltd, Barito
Pacific Timber, Citra Marga Nusaphala Persada, Daya Guna
Samudera, Hanjaya Mandala Sampoerna, Indah Kiat Pulp and Paper
Corp, Inti Indorayon Utama, Lontar Papyrus Pulp and Paper
Industry, Pabrik Kertas Tjiwi Kimia, Pindo Deli Pulp and Paper
Mills, Riau Andalan Pulp and Paper.

"The rating changes reflect Indonesia's deepening political
crisis and civil unrest, which exacerbate operating risks facing
business in that country," S&P said.

"The ability of companies to meet coupon and maturity
obligations in a timely manner has deteriorated, and may become
more difficult as business operations are subject to an
increasingly volatile operating environment, that could result in
a plant closure and sabotage.

"Further, paralysis in the banking system could cause a
collapse in payment transactions," S&P said.

Those companies now on CCC+/WatchNeg/- are Asia Pulp and
Paper, Indah Kiat, Lontar Papyrus, Pabrik Kertas, and Pindo Deli.

Those on CCC/WatchNeg/- are Inti Indorayon, Riau Andalan and
Daya Guna, and those on CCC-/WatchNeg/- are Barito Pacific,
Hanjaya Mandala, Citra Marga.

With the exception of Inti Indorayon and Riau Andalan which
had been rated CCC-plus and on developing watch, the other
companies had been rated B-minus on negative watch.