DCR only issues local ratings

With respect to the article Bhakti set to issue Rp 200b in bonds (The Jakarta Post, Sept. 28, 1999), we would like to make a correction on the rating assigned by PT Kasnic Duff & Phelps Credit Rating Indonesia.

The issuance of Obligasi Bhakti Investama I Tahun 1999 was rated by PT Kasnic Duff & Phelps Credit Rating Indonesia, or PT Kasnic DCR Indonesia for short, a joint venture company between the U.S.-based rating agency, Duff & Phelps Credit Rating Co., and PT Kasnic Indotama. PT Kasnic DCR Indonesia is a second rating company approved by BAPEPAM.

As an Indonesian company, PT Kasnic DCR Indonesia can only issue a local rating to Indonesian companies issuing bonds. A local rating means the rating by DCR's local affiliate, such as PT Kasnic DCR Indonesia, which expressed the ability of the transaction to meet domestic obligations in its local or domestic currency. PT Kasnic DCR Indonesia is not allowed to issue international ratings, domestic and foreign currency ratings, because those can only be issued by DCR-United States.

IWAN WISAKSANA

DCR Indonesia