Nagari's rating upgraded
JAKARTA (JP): Local rating agency PT Pemeringkat Efek Indonesia (Pefindo) has upgraded the rating of rupiah bonds issued by Bank Nagari from idBB- to idBB+, while assigning a idBBB- rating to Bank Jabar's Rp 150 billion bonds.
Pefindo said it upgraded Bank Nagari 1997's bonds rating because the latter relatively outperformed other banks in capitalization and manageable asset quality.
Pefindo said in a statement last week, "Bank Nagari, however, still suffers tenor mismatches in its assets and liabilities."
Bank Nagari, which is controlled by the West Sumatra provincial administration is among smaller-sized banks in the country, with total assets as of Sept. 30, 1999, reaching Rp 1.229 trillion (US$166 million), and a network comprising 54 branches.
It focuses on retail banking with operations largely in West Sumatra, where the regional government owns 96 percent of its shares, the company said.
The company cited Bank Nagari and Bank Jabar as falling under the A category banks, meaning they do not join the government sponsored banking recapitalization program.
Bank Jabar, which is owned by the West Java provincial administration, is planning to offer bonds worth Rp 150 billion to boost its lending operation. The bank booked total assets of Rp 2.191 trillion as of Sept. 30, 1999.
Bank Jabar's idBBB- rating reflects its strong capitalization, operating efficiency and manageable asset quality, the company said.
"The rating also reflects the bank's dependence in its funding on the West Java regional government," Pefindo said.
Eighty percent of Bank Jabar's portfolio is retail customers, whom the banks serves with 69 branches.(bkm)