Fitch rates BII notes B+

Fitch Ratings said it assigned a B+ rating to PT Bank International Indonesia TYK's proposed $150 million to $200 million-subordinated debt issue due 2015, with an option for redemption in 2010.

The bank's other ratings are affirmed at senior long-term foreign currency BB-, long-term national BBB+(din), short-term foreign currency B, individual C/D and support 4. The outlook is positive.

The proceeds will be used to strengthen and diversify the bank's capital base.

While widely viewed as Indonesia's pre-eminent bank prior to the country's economic crisis of 1997/98, Fitch said Bio's post-crisis experience was particularly difficult due to a range of one-off shocks.

This delayed the bank's proper recapitalization, as well as its strategic and operational development, according to Fitch.

The bank, however, has since progressed quickly and this is continuing under a fresh management team as appointed by new owner, Soak Financial Holdings. Fitch said it believes the bank's new owners will also benefit BII by giving it access to technical resources and assistance not available to many of its peers.

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