Moody's rates Mayapada bonds A2.id, Baa1.id

Moody's Investors Service said it assigned an A2.id rating to PT Bank Mayapada Internasional Tbk's proposed Obligasi II Bank Mayapada Tahun 2007 senior bonds due 2012 and a Baa1.id rating to its proposed Obligasi Subordinasi II Bank Mayapada Tahun 2007 subordianted bonds due 2017.

The outlook is stable.

Proceeds will be used to fund growth and to improve Bank Mayapada's funding structure.

The agency said the ratings reflect the bank's moderate levels of profitability and asset quality.

At the same time, the ratings are constrained by Bank Mayapada's limited franchise, as it is considered as a small player in a consolidating and increasingly competitive playing field, and by the bank's low efficiency as a consequences of its focus on the small- and medium-sized enterprise sector and its high cost funding mix, Moody's said, adding that the nature of the bank's franchise undermines its ability to compete with other big banks.

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