PPC SA informs the investor community that an article published in a weekly newspaper on 1/11/08, referring to a downgrading of the Company's credit rating by Standard and Poor's (S&P) in its September 26th 2008 report, is inaccurate.
In fact, the credit rating assigned to PPC from S&P remains BBB+. The only change made was in PPC's outlook from stable to negative.
In addition, regarding other references on PPC in the same article, the Company wishes to note that:
- PPC's Business Plan is going to be presented to the investor community on 18th of November 2008, following its approval by the Board of Directors. Therefore, any reference made, as in the article in question, to PPC needing € 7 bln to finance its investment plan for 2009-2014, is premature and invalid.
- The financial department of PPC never recommended the 'issuance of a €1 bln bond with medium term tenor, i.e. with repayment period of 7-8 years'. Therefore, the reference made in the publication regarding 'the mounting difficulties encountered by PPC in concluding a €1 bln bond' is absolutely inaccurate.
- The reference to current debt obligations of € 1, 46 bln that need to be settled within 2009 is inaccurate. As stated in the June 30th, 2008 Financial Statements of the Company, the amount of €1,46 bln is the current portion of long-term debt as of that date, and is repayable over the second half of 2008 and the first half of 2009. Having said that, and to avoid any further misinterpretations that may jeopardize PPC's credibility, we are obliged to note that all PPC's debt obligations that fell due during 1/7/2008-31/10/2008 were settled in full.