Bank Dharmala's rating cut

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)