S&P upgrades ratings on Mandiri, Danamon<\/p>\n
Standard & Poor's Ratings Services, an international rating
\nagency, said on Friday it had upgraded the credit rating on Bank
\nMandiri and Bank Danamon by one notch.<\/p>\n
The long-term local currency counterparty credit ratings on
\nthe two banks were raised from \"B\" to \"B+\", with the outlooks on
\nthese rating being stable, S&P said in a press release.<\/p>\n
At the same time, it added, the long-term foreign currency and
\nshort-term local and foreign currency counterparty credit ratings
\non both banks were affirmed at \"B\" and \"B\". The outlook s on the
\nratings remained also stable.<\/p>\n
\"These ratings actions recognize the continuing, if gradual,
\nimprovement in the banks' credit profiles. In particular, there
\nhas been improvement in non-performing assets and profitability.
\nProfitability, supported by better interest margins, is becoming
\nmuch more satisfactory.<\/p>\n
\"Loans however, continue to make up only a small percentage of
\nthe asset book, indicating that the Indonesian banking sector has
\nnot fully recovered to its pre-1997 crisis financial intermediary
\nrole. Naturally, there will be some added credit risk to the
\nbank's asset book as the proportion of loan rises,\" Adrian Chee,
\ncredit analyst at the agency said in the statement.<\/p>\n
Mandiri, the country's largest bank, won praised for its
\nintensified efforts in improving its loan restructuring and
\nrecoveries, as well as for disposing some of its foreclosed
\nproperties and writing off its loss accounts.<\/p>\n
The agency also noted that as of the first semester, the
\nbank's efficiency -- as measured by the ratio of non-interest
\nexpense to average assets -- has improved to 1.6 percent. -- JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sp-upgrades-ratings-on-mandiri-danamon-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}