Bank Dharmala's rating cut

JAKARTA (JP): The country's only rating agency, PT Pemeringkat Efek Indonesia (Pefindo), announced Saturday that it had lowered the corporate rating of the publicly listed Bank Dharmala to idBBB- from idBBB+, with a negative outlook.

The agency said in a statement that it forecast the bank's asset quality and profitability would weaken due to the monetary crisis which has seen the rupiah's value to fall by 80 percent against the American dollar since last July.

The agency said that the bank's US$42 million borrowing together with its real estate exposure, which accounted for around 25 percent of the total loans, would put added pressure on the bank's financial performance.

Pefindo said the agency would closely monitor Dharmala Group's overall credit liquidity situation especially if the current conditions continue. Dharmala Group also has interests in agribusiness. (aly)