S&P ups BNI foreign credit rating

S&P ups BNI foreign credit rating

JAKARTA: Standard & Poor's has raised its long-term foreign
currency counterparty credit rating on P.T. Bank Negara Indonesia
(Persero) Tbk. two notches to single-'B'-minus from triple-'C'.

The company said in a statement available on Dow Jones
Newswires the upgrade reflects the improvement in the bank's
profile, particularly in respect of asset quality and operating
profitability, over the past 18 months.

S&P affirmed its 'C' short-term foreign currency counterparty
credit rating on the bank. The outlook is negative.

At the same time, the rating on Bank BNI's US$145 million
senior unsecured notes issue due 2007 is also raised to single-
'B'-minus from triple-'C'.

The bank's asset quality has improved on the back of loan
restructurings and loan growth. Nonperforming assets (NPAs;
defined as nonperforming loans plus restructured loans and
foreclosed real estate collateral) fell to 48 percent by year-end
2001 from 72 percent in 2000.

While the NPA ratio is extremely high, the proportion of
loans-to-assets at 28 percent is low by international standards,
partially mitigating the adverse level of NPAs. -- JP