Fitch upgrades ratings of RI banks

The Jakarta Post, Jakarta

International rating agency Fitch Ratings has upgraded a number of local banks following recent upgrade in the country's sovereign ratings.

The agency said in statement issued on Tuesday that it had upgraded the long-term foreign currency rating of the giant state-owned Bank Mandiri to B+ from B, with a stable outlook.

"The rating for its US$300 million senior unsecured notes due 2008 has also been upgraded to B+ from B," it said.

Fitch added that the ratings for the bank's $125 million subordinated notes due 2006 and $125 million subordinated notes due 2012 were also affirmed at B.

Fitch last week upgraded Indonesia's currency rating, citing improving stability in the country's macroeconomy and declining trends in the government's debt level to around 70 percent of gross domestic product (GDP) from 100 percent of GDP three years ago.

The rating upgrade is expected to help improve investor confidence ahead of the government's international bond offering next year.

Other Indonesian banks whose ratings were upgraded by Fitch are as follows:

Bank Negara Indonesia: Long-term foreign and local currency ratings upgraded to B+ from B. The rating for its $150 million subordinated notes is upgraded to B from B- (B minus). The outlook is stable.

Bank Central Asia: Long-term foreign currency rating upgraded to B+ from B. The outlook is stable.

Bank Rakyat Indonesia: Long-term foreign currency rating upgraded to B+ from B. The outlook is stable.

Bank Danamon Indonesia: Long-term foreign currency rating upgraded to B+ from B. The outlook is stable.

Bank Internasional Indonesia: Long-term foreign currency rating upgraded to B from B-. The outlook is stable.

Bank NISP: Long-term foreign and local currency ratings upgraded to B+ from B. The outlook is stable.

Bank Buana Indonesia: Long-term foreign currency rating upgraded to B+ from B. The outlook is stable.