Bank Niaga on creditwatch

Bank Niaga on creditwatch

HONG KONG (Reuter): Standard & Poor's said yesterday it had
placed the BB long-term and single-B short-term ratings of
Indonesia's PT Bank Niagaon creditwatch with negative
implications.

S&P said its move followed the announcement by Tirtamas Group
of a plan to buy 50 percent of Bank Niaga.

It said Tirtamas, a diversified conglomerate, had indicated it
intended to achieve economies of scale in the finance sector
through the acquisition of the Bank Niaga stake, which might
affect Bank Niaga's business profile.

S&P said it intended to meet with bank management and its new
shareholders to discuss the acquisition's impact on bank
operations and to talk about management's future intentions for
the bank.