Friday, March 12, 2010

S&P raise rating of three banks

Standard & Poor's Ratings Services said today that it raised its long-term counterparty ratings on three Indonesian banks. The outlook on each of these ratings is stable. These banks are PT Bank Mandiri Tbk, PT Bank CIMB Niaga Tbk, and PT Bank Internasional Indonesia Tbk.
As a result, all these banks are now rated BB/Stable/B compared with BB-/Positive/B earlier. The ratings on the banks were raised following the similar action on the sovereign credit rating on Indonesia (foreign currency BB/Positive/B; local currency BB+/Positive/B; ASEAN scale axBBB+/--/axA-2).
S&P also affirmed the ratings on PT Bank Danamon Indonesia Tbk. (BB-/Positive/B). There is no change in the rating on PT Bank Negara Indonesia (Persero) Tbk. (BB-/Stable/B).
The rationales for the various rating actions--varying somewhat across the banks--are given below. S&P does not rate any Indonesian bank above the sovereign foreign currency rating because of the direct and indirect influence that the sovereign, if in distress, would have on an Indonesian bank's operations, including the bank's ability to service foreign currency obligations.

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