BB/B for Bank Umum

BB/B for Bank Umum

SYDNEY (Reuter): Standard and Poor's Corp said it has assigned a BB long term rating and a B short term rating to Indonesia's PT Bank Umum Nasional (BUN).

S&P said the ratings outlook was stable. "The ratings reflect BUN's strong business franchise, long-established customer relationships, professional management and initiatives to redesign the bank's distribution network," S&P said.

"However the ratings are also affected by risk factors associated with the developing status of the Indonesian economy and banking industry, the bank's low capitalization and the level of non-performing loans, which while moderate by Indonesian standards, is relatively high on an international basis," S&P said.

S&P said the rating for BUN was its first public rating for an Indonesian bank and follows corporate ratings for seven Indonesian companies.