Release: S&P withdraws KPC ratings

(SINGAPORE (Standard & Poor's) Aug. 7, 2006)--Standard & Poor's Ratings Services said today it has withdrawn its BB-/Negative/-- corporate credit rating on Indonesia's PT Kaltim Prima Coal (KPC) at the company's request.

KPC is one of the largest coal mining companies in Indonesia, accounting for about 18% of coal production in the country in 2005. The negative outlook reflected Standard & Poor's concern that KPC's financial risk profile could weaken if KPC's new shareholder uses the company to significantly increase its debt to finance the acquisition of KPC shares. (end of release)