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