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.