Moody's rates four RI banks

Moody's rates four RI banks

HONG KONG (Reuter): Moody's Investors Service said yesterday
it assigned first time ratings to four Indonesian private banks,
with long-term foreign currency deposit ratings ranging from Ba1
to Ba2.

Short-term foreign currency obligations of the four were rated
not prime, it said.

Moody's said it assigned PT Bank Bali ratings of Ba2/Not Prime
and a Bank Financial Strength Rating (BFSR) of D.

It assigned PT Bank Dagang Nasional Indonesia (BDNI) ratings
of Ba2/Not Prime and a BFSR of D. It also gave a Ba2 rating to
the US$100 million floating rate note due 2000 issued by BDNI-
Cayman Islands branch.

Moody's assigned PT Bank Danamon ratings of Ba2/Not Prime and
a BFSR of D. It also gave a Ba2 rating to the $30 million
floating rate note due 2000 issued by Bank Danamon-Cayman Islands
branch.

It assigned PT Panin Bank ratings of Ba1/Not Prime and a BFSR
of D-Plus.

The rating agency noted the sovereign ceilings for Indonesian
bonds and long-term deposits were Baa3 and Ba1, while the ceiling
for all short-term obligations was Not Prime.

Moody's said the four rated banks were among the 10 largest
private banks in Indonesia and were all publicly listed.

Their asset quality and capital levels appeared strong in
comparison with those of state banks, although the rapid loan
growth recorded by the banks during the past two years could have
a negative impact on asset quality in the future.

Growth in lending had also outstripped growth in deposits.

Moody's said Indonesia's accounting, legal and regulatory
infrastructures were weak though improving.

Disclosure issues were considered significant impediments to
the analysis of banks, although disclosure for listed banks was
better than that for state and unlisted banks, it said.

The operating environment for Indonesian private banks would
be more challenging over the medium term as the sector entered
into a period of consolidation, rationalization and
specialization, Moody's said.