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.