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.