RATING - Bank Nagari (Sukuk Mudharabah)

PEFINDO assigned “_idA” rating to PT Bank Pembangunan Daerah Sumatera Barat or Bank Nagari (BPSB or the Bank) as well as its proposed Bond VI/2010 of IDR500 billion. At the same time, PEFINDO also assigned “_idA-” rating to BPSB’s proposed Subordinated Debt I/2010 of IDR 100 billion and “_idA_(sy)” rating to the Bank’s proposed Sukuk Mudharabah I/2010 of IDR100 billion. Outlook for the ratings is “stable”.
The ratings reflect strong support from the Bank’s shareholders, its strong market position in the region, and strong profitability. However, the ratings are constrained by the Bank’s relatively high non performing loans, below average liquidity indicators, and intensifying competition in the region.

BPSB was established on March 12, 1962 under the name of PT Bank Pembangunan Daerah Sumatera Barat. As of 1H2010, the Bank’s shareholder structure comprised of Provincial Government of West Sumatra (37.10%), Regency Government of West Sumatra (61.84%) and BPSB’s Employees Cooperative (1.06%).
Rating Period: October 20, 2010 – October 1, 2011

Source : http://new.pefindo.com/r_releasedetail.php?cid=766 - Nov 8, 2010