Bank Exim's rating adjusted

Bank Exim's rating adjusted

JAKARTA (JP): International rating agency Standard & Poor's
revised local-currency rating of state Bank Ekspor-Impor
Indonesia (Bank Exim) to "CCCpi" from "NM" following the bank's
release from the supervision of the Indonesian Bank Restructuring
Agency (IBRA).

The agency said the "CCCpi" rating reflected concerns about
the potential impact on Bank Exim's asset quality from a rise in
borrower defaults following a serious deterioration in the
economy.

Bank Exim was released from IBRA supervision following the
government's decision to inject further capital into the state
bank.

The agency said the rating of Bank Exim had been revised to
NM, or not meaningful, on April 6, after the bank was placed
under IBRA supervision, which Standard & Poor's regarded as
regulatory intervention.

The agency added that an NM rating was applied in situations
where considerable uncertainty existed as to the future financial
profile of a financial institution. (gis)