S&P revises Datakom rating

S&P revises Datakom rating

JAKARTA (JP): Standard & Poor's announced on Friday it had
revised the ratings on PT Datakom Asia to 'D' from 'SD' following
the nonpayment of interest on Pratama Datakom Asia B.V.'s US$260
million senior notes (due July 2005) on Jan. 15, 2001, which were
guaranteed by Datakom.

In addition, Datakom's senior unsecured rating has been
changed to 'D' from double-'C' where it was placed in January
1998, reflecting the nonpayment of interest on the notes,
Standard & Poor's said in a press release.

The company has for an extensive period been under financial
stress as a result of an aggressive financial profile and a small
subscriber base. Prior to the January due date, interest had
previously been met on the notes out of a prefunded interest
account, but these reserves were depleted for an interest payment
in July 2000.

Standard & Poor's will continue to follow Datakom's efforts to
restructure its debts.