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.