RI banks' ratings lowered

RI banks' ratings lowered

HONG KONG (Dow Jones): Thomson BankWatch said Wednesday it has downgraded the local currency debt ratings of Indonesia's Bank Duta and Bank Rama to LC-4 from LC-3 amid concerns about the deteriorating operating environment for Indonesian banks.

Both banks have been hit by sharp increases in the level of bad debt, a sharp erosion in earnings capacity and severe pressure on the capital base, the international ratings agency said.

Both Bank Duta and Bank Rama remain dependent on receiving substantial recapitalization support if their core businesses are to improve, Thomson said.