Danareksa bond rating downgraded

PT Pemeringkat Efek Indonesia (Pefindo) is likely to downgrade one notch into idA- as from idA rating of the IV bonds of PT Danareksa (Persero).

Pefindo downgrading rating for the Danareksa IV bonds will be worth IDR300 billion at maximum last week. One of the reasons of the IV bond downgrade is attributed to the derivative transaction and reverse repurchase agreement (repo) faced by Danareksa due to the depreciated rupiah against US dollar.

Amidst the global financial crisis currently, the bond rating is crucial as it will define the investor demands. With the one notch downgrading into idA-, the Danareksa IV bond will still be absorbed by market.

Danareksa still negotiating with other parties in the derivative transactions due to the rigid agreement based on the International Swaps and Derivative Association.