Pegadaian's rating outlook

JAKARTA (JP): Local credit rating agency, PT Pefindo, has said it is considering upgrading the BBB rating of the bond issued by state-owned pawn company Perum Pegadaian.

Pefindo said its was considering the upgrade because the company's performance had improved.

"The company's operating profit to average assets was above 5 percent last year, which is considered one of the best of the local financial institutions," it said.

It said all loans were backed adequately with relatively liquid collateral, such as gold jewelry.

"The company's relatively strong market position, especially in the middle to low market segment, and a strong support of its approximately 600 operating branches covering nearly all areas in the country had fostered its targeted growth," it said.

The company had also maintained its healthy financial performance for the past few years, despite rapid growth, it said. (das)