Moody's rates state banks

Moody's rates state banks

HONG KONG (Reuter): Moody's Investors Service said yesterday it had assigned senior long-term foreign currency bond ratings of Baa3 and Ba1 ratings to the long-term foreign currency deposit obligations of six Indonesian state banks.

Short term foreign currency obligations were rated Not Prime.

Moody's also assigned Bank Financial Strength Ratings (BFSR) ranging from D-plus to E to the six banks, all 100 percent state- owned institutions.

The banks were: Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Import Indonesia, Bank Negara Indonesia, Bank Rakyat Indonesia and Bank Tabungan Negara.

Indonesia's foreign currency bonds and notes are currently rated Baa3, long-term bank deposits Ba1, and short-term obligations Not Prime.

Moody's said the difference between the senior debt and long- term deposit ratings reflected the "great likelihood that deposits would be rescheduled in a stress scenario".