Nagari's rating upgraded

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)