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