BII rated BB-plus

BII rated BB-plus

SYDNEY (Reuters): Standard and Poor's Corp said it has assigned its "BB-plus" long-term and "B" short-term counterparty ratings to P.T. Bank Internasional Indonesia, the third largest private commercial bank in Indonesia.

Standard and Poor's said the ratings reflected the bank's very sound domestic franchise and its superior financial profile which distinguished the bank from its domestic peers.

However, the ratings agency said the bank's strong rate of lending growth, which could lead to a deterioration in asset quality as the portfolio seasons, was offsetting its positive features.

Standard and Poor's said this had intensifed as a rating concern because of the recent surge in Indonesian interest rates and the significant devaluation in the rupiah.

As at June 30 1997 BII had assets of about Rp 19.7 trillion or about US$8.1 billion, which equates to about 4.6 percent of Indonesian commercial banking assets, Standard and Poor's said.

The ratings agency said the ratings outlook was negative and it would be gauging the impact of recent economic deterioration in Indonesia on BII's financial profile.