Fitch affirms Bank Internasional Indonesia

Fitch Ratings said it affirmed the ratings of Bank Internasional Indonesia, including its long-term foreign-currency issuer default rating at BB-, short-term rating at B, national long-term rating at AA-(idn), individual rating at C/D and support rating at 4

The ratings reflect its stable profitability and improved capital position, which help to mitigate a high level of impaired loans, the agency said. The agency also noted that the bank's underlying profitability improved in the first nine months of 2006 as loan margins held steady between 5.8% and 5.9%, loan growth was strong and contribution from non-interest income remained good, Fitch said.

But loan quality worsened, the agency added, as consumer loan defaults increased in response to the weaker macro conditions over the period.

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