S&P rates Polysindo notes BB minus

S&P rates Polysindo notes BB minus

MELBOURNE (Reuter): Standard and Poor's Corp said yesterday it
assigned its BB minus credit rating to the US$260 million senior
notes issued by Indonesia's Polysindo International Finance Co
B.V.

S&P said it has placed this rating on creditwatch with
positive implications. The notes are guaranteed by Polysindo's
parent PT Polysindo Eka Perkasa.

The BB minus rating assigned to Polysindo's US$125 million
2001 global notes remains on creditwatch with developing
implicatons.

"The BB minus rating assigned to Polysindo reflects the
prospective 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.

S&P said the BB minus rating assigned to Polysindo's US$125
million 2001 global notes remain on creditwatch with developing
implications.

It said Polysindo was the largest textile producer in
Indonesia and was close to completing the first stage of a major
upgrade to its petrochemical production capability.

"Operating margin for the group has remained strong, although
other credit measures have weakened over the past three years,
reflecting the heavy debt usage of assets under development," S&P
said.