BFC rating upgraded

BFC rating upgraded

JAKARTA (JP): Indonesia's only rating agency PT Pemeringkat
Efek Indonesia (Pefindo) has upgraded its long-term rating of
Bakrie Finance Corporation (BFC) and its bonds to idB from idD.

The rating agency said yesterday the rating upgrade was made
after reassessing the liquidity of the company and its
subsidiaries.

Pefindo said the upgrading reflected the firm's slightly
improved cash flow condition, especially after a rights issue
early this year, an improvement in its overall asset quality and
better asset-liability management at Bank Nusa Internasional and
PT Swadinamika Bakrie Finance.

Bakrie Finance Corporation is now the holding company for the
Bakrie Group's various financial institutions, with Bank Nusa and
Swadinamika Bakrie Finance as its major subsidiaries.

Pefindo said BFC had invested Rp 549 billion in several
subsidiaries from a total of Rp 720 billion made through its
rights issuance.

The remaining Rp 160 billion will be used as additional
working capital and is now being managed by Bakrie Securities,
Pefindo said. (aly)