BNI ratings on Creditwatch

BNI ratings on Creditwatch

JAKARTA (AFX-ASIA): Standard & Poor's said it has placed its CCC+ long term local currency, CCC- long term foreign currency and C short term local and foreign currency counterparty credit ratings on PT Bank Negara Indonesia on CreditWatch with positive implications.

The ratings action is in response to the financial support provided to BNI by the Indonesian government and the recent upgrade of the sovereign credit ratings on Indonesia, S&P said.

It said the extent of any upward revision hinges on a thorough review of the quality of the bank's assets, its provisions for bad and doubtful debt, and the implications of BNI's profitability and capital position.

The implementation of a government sponsored recapitalization program has increased BNI's net worth to a positive Rp 5.68 trillion at end-June from a deficit of Rp 43.98 trillion, and lifted BNI's risk-weighted capital ratio to 4 percent.

Government recapitalisation bonds account for almost three- fifths of BNI's total assets.