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.