Dharmala Intiutama downgraded

Dharmala Intiutama downgraded

TOKYO (Dow Jones): Japan Rating and Investment Information Inc. (R&I) said yesterday that it has cut its long-term debt rating for Dharmala Intiutama International B.V., a Dutch unit of an Indonesian P.T. Dharmala Intiutama (DIU), to single-C from triple-C.

The downgrade affects Dharmala Intiutama International's Y15 billion of Samurai bonds due July 2002, fully guaranteed by DIU.

DIU is financial situation has been hit very severely in Indonesia's economic crisis, although Indonesia will likely reach an agreement with international banks on revision of terms of its long-term debt payments, the rating agency said.

Interest payment of floating-rate notes (FRN), which are also guaranteed by DIU, is scheduled today, but there is virtually no possibility that the interest payment will be made without delay, R&I said.