BII rating reset to CCC

BII rating reset to CCC

HONG KONG (Dow Jones): Duff & Phelps Credit Rating Co. Tuesday said it removed Bank Internasional Indonesia's (BII) foreign and local currency long-term ratings outlook from Rating Watch - Down.

At the same time, Duff & Phelps reset the bank's rating on long-term foreign currency debt to CCC from B-, and reaffirmed the bank's rating for long-term local currency debt at B-.

Duff & Phelps also reaffirmed its B- rating on Bank Internasional's credit-card voucher-backed notes, and removed them from Rating Watch-Down.

The move reflects improvements in the economy and the political outlook for Indonesia, Duff & Phelps said in a press release.

Still, the ratings agency said it expects the new government to face tough challenges in implementing economic reforms and maintaining political stability.

As a result of government-ordered reforms and mergers, Bank Internasional now is the largest private-sector bank in the country, Duff & Phelps noted.