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)