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)