Fri, 11 Apr 2003

S&P rates Bank Mandiri notes B-

JAKARTA: International rating agency Standard & Poor's said on Thursday it had assigned a B- long-term issue rating to Bank Mandiri's proposed US$200 million senior unsecured, five-year fixed-rate notes.

"These notes are being issued under the bank's $1 billion debt issuance program to which S&P has assigned its B- senior unsecured debt rating and CCC subordinated debt rating," the agency said in a statement.

The CCC rating on the program's subordinated notes was based on the subordinate ranking of such notes to all senior unsecured debt of Bank Mandiri.

"As the bank's long-term counterparty credit rating of B- is not investment-grade, the proposed notes are rated two notches below the bank's counterparty credit rating, in accordance with S&P criteria," the agency said.

Proceeds from the $200 million notes and any later issues under the program would be used both to refinance existing borrowings and finance business expansion.

The B- ratings described above are above the CCC- foreign currency rating on Indonesia. -- JP