S&P rates BNI's sub notes CCC+

S&P rates BNI's sub notes CCC+

JAKARTA: Standard & Poor's Ratings Services assigned on Friday its 'CCC+' rating to the proposed US$100 million subordinated notes issue by Indonesia's P.T. Bank Negara Indonesia (Persero) Tbk due 2013, with a call option in 2008.

The rating is based on the issue's subordinate ranking to all senior unsecured debt of BNI, which includes its existing debt of $145 million due 2007 (B), but will rank pari passu with the bank's existing $150 million 10-year subordinated debt due 2012 (CCC+), and all future subordinated debt issues.

The issuer has a call option to redeem the notes in whole, but not in part, in 2008, S&P said in a statement.

The proposed $100 million subordinated debt notes will qualify as Tier-2 capital under Bank Indonesia's existing capital adequacy regulations.

Any material change to the terms and conditions of the proposed subordinated note issue could affect the rating on the issue. -- JP