Bangkok Post, Thailand, Business Briefs Column.

Aug. 4--NEW ING FUND LOOKS AT ASIAN DEBT: ING Mutual Fund plans to launch a new US$200-million foreign investment fund focused on Asian debt.

Managing director Maris Tarab said the new fund aimed for an annual return on investment of 5 percent. The fund launch follows a recent announcement by the Bank of Thailand easing restrictions on overseas investment.

Five local asset-management firms have been offering foreign investment funds since they were approved for the first time early last year.

ADVANCE AGRO RATING SET AT CC: Standard & Poor's Ratings Services has affirmed its 'CC' senior unsecured debt rating on paper manufacturer Advance Agro Plc's US$48.7 million in debt due in 2007 (actually issued by Advance Agro Capital BV).

The rating is removed from Credit-Watch, where it was placed with negative implications in February 1999. Nevertheless, the rating on the notes indicates that they remain highly vulnerable to non-payment, although the company continues to make timely interest payment, S&P said.

However, the issuer rating on Advance Agro remains 'SD' because of the company's continued failure to make timely payment on bank debts since the beginning of 2002. As of March 31, Advance Agro was in default on repayments of 2.5 billion baht of debt from Thai banks. It has also not made the quarterly payments on the Thai bank loans that were restructured in 2000, and it is in breach of financial covenants on these loans, which entitles the banks to call 5.7 billion baht in debts on demand.

Although the company is not making payments for the 9.2 billion baht in loans from export credit agencies, these obligations have been met by the Thai banks, which have guaranteed them. "Consequently, the company is highly dependent on the domestic banks," S&P said.