S&P rates Titan notes BB-

Standard & Poor's said it assigned its BB- long-term credit rating on Malaysia-based Titan Petrochemicals & Polymers Bhd. At the same time, S&P assigned its BB- rating to Titan's proposed senior unsecured $300 million notes due 2011.

The outlook is stable.

The notes are proposed to be issued by Titan Capital Ltd., a Labuan-based wholly owned subsidiary of Titan. The proposed $300 million notes would be unconditionally and irrevocably guaranteed by Titan and its three main operating subsidiaries.

S&P said Titan is the leading manufacturer of polymers and petrochemicals in Malaysia.

Titan's rating is constrained, the agency said, by its weak financial profile and generic industry risks. Titan showed net losses in 2001 and 2002, as the impact of its high debt level was amplified by the coincidental increase in its production capacity with the industry downturn. Although the company's financial performance is expected to improve in the medium term with the upturn in the industry cycle, it remains susceptible to industry factors, which are beyond the company's control.

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