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.