Nagari's rating upgraded<\/p>\n
JAKARTA (JP): Local rating agency PT Pemeringkat Efek
\nIndonesia (Pefindo) has upgraded the rating of rupiah bonds
\nissued by Bank Nagari from idBB- to idBB+, while assigning a
\nidBBB- rating to Bank Jabar's Rp 150 billion bonds.<\/p>\n
Pefindo said it upgraded Bank Nagari 1997's bonds rating
\nbecause the latter relatively outperformed other banks in
\ncapitalization and manageable asset quality.<\/p>\n
Pefindo said in a statement last week, \"Bank Nagari, however,
\nstill suffers tenor mismatches in its assets and liabilities.\"<\/p>\n
Bank Nagari, which is controlled by the West Sumatra
\nprovincial administration is among smaller-sized banks in the
\ncountry, with total assets as of Sept. 30, 1999, reaching Rp
\n1.229 trillion (US$166 million), and a network comprising 54
\nbranches.<\/p>\n
It focuses on retail banking with operations largely in West
\nSumatra, where the regional government owns 96 percent of its
\nshares, the company said.<\/p>\n
The company cited Bank Nagari and Bank Jabar as falling under
\nthe A category banks, meaning they do not join the government
\nsponsored banking recapitalization program.<\/p>\n
Bank Jabar, which is owned by the West Java provincial
\nadministration, is planning to offer bonds worth Rp 150 billion
\nto boost its lending operation. The bank booked total assets of
\nRp 2.191 trillion as of Sept. 30, 1999.<\/p>\n
Bank Jabar's idBBB- rating reflects its strong capitalization,
\noperating efficiency and manageable asset quality, the company
\nsaid.<\/p>\n
\"The rating also reflects the bank's dependence in its funding
\non the West Java regional government,\" Pefindo said.<\/p>\n
Eighty percent of Bank Jabar's portfolio is retail customers,
\nwhom the banks serves with 69 branches.(bkm)<\/p>",
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