INDONESIA - RATNGS - Moody’s Keeps Indonesian Outlook Stable

www.thejakartaglobe.com - Moody’s Investors Service has maintained a stable outlook for Indonesia’s economy, citing the country’s reliable economic growth and prudent debt management. The announcement appeared to be welcomed by the market, which on Monday pushed up bond yields and set the rupiah into stronger territory in Jakarta.

Moody’s analyst Christian de Guzman said relatively strong economic growth coupled with prudent fiscal management prompted the rating assessor to maintain its outlook for Indonesia. A stable outlook for a country’s sovereign debt means the rating assessor is unlikely to change its rating within the next 12 months.

“Indonesia’s Baa3 sovereign rating is anchored by strong growth, low government debt, and the recent track record of prudent fiscal management,” De Guzman said in a report released on Monday. (source)

INDONESIA - RATINGS - Pegadaian

www.pefindo.com -PEFINDO affirmed its “_idAA+” ratings of PT Pegadaian (Persero) (PPGD or the Company) and the Company’s outstanding Bonds X, XI, XII and XIII, Shelf Registration Bond I/2011 Phase I and Phase II/2012, as well as MTN II/2011.  PEFINDO also affirmed its “_idAA+(sy)” rating for the Company’s MTN Ijarah I/2011. Outlook for the corporate rating is “stable”.  The ratings reflect strong support from the Government of Indonesia (GOI), the Company’s superior position in pawn service business, as well as very strong asset quality and favorable profitability indicators. The ratings are constrained by tight competition in the non-pawn brokerage business. (source)

INDONESIA - RATINGS - Fitch confirms ratings of Bank Muamalat A

www.kontan.co.id - JAKARTA. Fitch Ratings affirmed the National Long-Term ratings of PT Bank Muamalat Indonesia Tbk at level A with a stable outlook and ratings at BBB Muamalat subordinated bonds.
The ranking reflects Fitch's view of the limited opportunities of government support, providing Muamalat symbolic role in the development of Islamic banking in Indonesia. It also highlights assets that are small compared Muamalat domestic banking sector.
Fitch assess the weakness of government support for the bank could have a negative effect for rating Muamalat. Meanwhile, for the ranking of subordinated bonds, according to Fitch that could trigger a decline in lending was aggressive. Especially when affecting the asset quality deterioration and weakening of the capital. (source)

INDONESIA - RATNGS - Fitch rates Bank Mualat A (idn)

www.investor.co.id - JAKARTA - Rating agency Fitch Ratings assign ratings (rating) Long-term Indonesia Tbk, PT Bank Muamalat at level A (idn) with a stable outlook, as well as subordinate debt rating at BBB level (idn).
Fitch assessed, the possibility is supported by the State Bank Muamalat is very small, because the bank already has a symbolic role in the development of Islamic banking in Indonesia. On the other hand, Fitch recognizes Muamalat assets is still relatively small compared to the domestic banking sector.
Until late last year, Bank Muamalat has 25 percent share of the total assets of Islamic banking. However, when compared to the total domestic industry (including conventional bank assets), only 1.1 percent. (source)

INDONESIA - RATNGS - Pefindo rates Indosat Sukuk Ijara

www.indosat.com - Pefindo Publishes Rating 'id AA +' (Double A Plus) for Indosat Bonds VIII 2012 and 'id AA + (sy)' (Double A Plus Sharia) for Indosat Sukuk Ijarah V Year 2012
 
Jakarta, June 18, 2012 - PT Indosat Tbk ("Indosat") announced today that Pefindo has assigned a rating 'id AA +' (Double A Plus) and 'id AA + (sy)' (Double A Plus Sharia) for each - each Indosat Bonds VIII 2012 and Indosat Sukuk Ijarah V Year 2012 to be published.
 
This rating reflects the strong support of the parent company, the stability of the company's market position, operating performance and stability. However, the ratings are also affected by the capital structure of the company's aggressive and tough competition in the telecommunications industry.  (source)

INDONESIA - RATINGS - Bank Syariah Mandiri Tbk.

www.pefindo.com - PEFINDO assigned its “idAA+” rating to PT Bank Syariah Mandiri (BSRM or the Bank) with a ‘stable’ outlook. The rating reflects very strong support from PT Bank Mandiri (Persero) Tbk (Bank Mandiri or BMRI, rated idAAA/Stable), very strong position in sharia banking segment, and improving asset quality indicators. However, the rating is constrained by the Bank’s moderate capitalization and weakening profitability measures.  (source)

WORLD - RATNGS - Fitch affirms Islamic Development Bank

www.reuters.com - Fitch Ratings has affirmed the Islamic Development Bank's (IsDB) Long-term Issuer Default Rating (IDR) at 'AAA' with a Stable Outlook and Short-term IDR at 'F1+'. IsDB's ratings are underpinned by strong intrinsic features, primarily by excellent capitalisation. IsDB is one of the most highly capitalised multilateral development banks (MDBs) covered by Fitch. The ratio of equity to assets has remained above 60% since inception (64.1% at end-1432H, equivalent to 25 November 2011 in the Gregorian calendar), mainly thanks to regular capital inflows from shareholders and steady yet moderate profits. The ratio of debt to equity is low, at 49.2% at end-1432H. The bank also maintains a comfortable level of liquid assets, which more than fully covered its short-term liabilities at end-1432H. Credit risk is moderate. The IsDB mainly extends project financing guaranteed by member states or state-owned banks to finance infrastructure or social services. (source)

INDONESIA - CAPITAL MARKETS - Muamalat: Measures to be Rp800 billion, for the 10.125%

www.bisnis.com - JAKARTA: Indonesia Tbk, PT Bank Muamalat increase the value of emissions from the subordinated sukuk plans Rp500 billion to Rp800 beginning billion, as strong demand from investors.
Hendiarto, Director of Finance and Operations Bank Muamalat, said the incoming requests from investors to the sukuk subordination (subdebt) of Phase I reach Rp1, 13 trillion, much higher than the initial offer Rp500 billion.
The high demand is the reason for the company to increase the value of emissions to Rp800 billion, or 60% higher than the supply.
"It will be decided in the near future, but indications are we will take up to Rp800 billion," he told Business Today Monday (18/6).  (source)

INDONESIA - RATNGS - Adhi Karya (Persero) Tbk.

www.pefindo.com -PEFINDO raised the ratings of PT Adhi Karya (Persero) Tbk. (ADHI or the Company), the Company’s Bonds IV/2007 at “_idA” from “_idA-” and its Sukuk Mudharabah I/2007 at “_idA_(sy)” from “_idA-_(sy)”.  At the same time, PEFINDO also assigned “idA” rating to the proposed bond “Obligasi Berkelanjutan I Adhi Tahap I tahun 2012” with a maximum value of IDR1.25 trillion and “_idA_(sy)” rating to the proposed “Sukuk Mudharabah Berkelanjutan I Adhi Tahap I tahun 2012” with a maximum value of IDR250 billion. The outlook for the rating is “stable”.   (source)

INDONESIA - CAPITAL MARKETS - Bank Muamalat Issues Subordinated Sukuk Worth IDR 1.5 Trillion

www.muamalatbank.com - Bank Muamalat Indonesia issues a total of IDR 1,5 trilion Subordinated Sukuk in Jakarta 5/30, as the Indonesian Islamic banking pioneer aims to strengthen the capital structure in speeding up business.

The idA(sy) rating is given by PT Pefindo - Credit Rating Indonesia for this Mudharaba-based subdebt, meanwhile Bank Muamalat was rated idA+ as the issuer. In the first period, the bank issues IDR 500.000.000.000 (IDR 500 billions) of the total amount of IDR 1.5 trillion to be issued in the next two years.  (source)

INDONESIA - CAPITAL MARKETS - Interest coupon of 9.1%, INDOSAT Bonds / Sukuk Strengthen Network

WWW.INILAH.COM, Jakarta - PT Indosat Tbk (ISAT) will offer a coupon rate of bonds VIII in 2012 in the range 7.875% -9.125% of the issuance of Rp2 trillion. A total of 65% to pay for a network license.
PT Indosat Tbk (ISAT) will offer bonds VIII of 2012 with a fixed rate of Rp2 trillion. In addition, the company also offers the sukuk Ijarah Indosat V in 2012 with the rest of the rewards as much as possible ijarah Rp500 billion.
These bonds consist of two series of the bonds series A 7-year maturity with a coupon rate in the range 7.875% -8.875% series B bonds and a term of 10 years with a coupon rate in the range 8.125% -9.125%. While the ijara sukuk valued at Rp500 billion seven-year term. "For the ijara sukuk yield equivalent Rp78.750.000-Rp88.750.000 per Rp1 billion pa," said Director of PT Mandiri Securities, Iman Rachman, Tuesday (29/05/2012).  (source)

INDONESIA - RATINGS - Bank Muamalat Indonesia Tbk.

new.pefindo.com -PEFINDO affirmed its “_idA+” rating to PT Bank Muamalat Indonesia Tbk (BBMI or the Bank) with a ‘stable’ outlook.  At the same time, PEFINDO also assigned “_idA” rating to the Bank’s proposed Sukuk Subordinated Bond under PUB scheme with amount of up to IDR1.5 trillion.  The rating reflects the strong support from Islamic Development Bank (IDB), high growth potential of sharia banking segment, and BBMI’s strong market position.  However, the rating is constrained by the Bank’s increasing pressure in capitalization profile and moderate profitability performance.  (source)

INDONESIA - INVESTMENT - Indonesian Corruption Is Hurting Foreign Investment: Standard & Poor’s

www.thejakartaglobe.com - Standard & Poor’s rating agency, the lone holdout among its peers in keeping Indonesia’s sovereign debt rating one notch below investment grade, says corruption is choking off foreign direct investment.

In a report on Thursday — titled “Indonesia’s Foreign Direct Investments Surge Despite Some Less Alluring Factors” — analysts Agost Benard and John Chambers said bureaucracy, corruption, legal uncertainty, infrastructure deficiencies and inflexible labor markets had long hampered foreign investment in Indonesia.

Benard said Indonesia’s large domestic market and rising income per capita makes the country a compelling investment destination for consumer goods manufacturers, “especially when viewed against the anemic growth outlook and saturated consumer markets of the EU and US.”  (source)

INDONESIA - RATNGS - Mayora Indah Tbk.

new.pefindo.com - PEFINDO affirmed its “_idAA-” ratings for PT Mayora Indah Tbk. (MYOR or the Company) and its Bond III/2008 and its “_idAA-_(sy)” rating for its Sukuk Mudharabah I/2008. PEFINDO also assigned “_idAA-” and “_idAA-_(sy)” ratings to the Company’s proposed Bond and Sukuk Mudharabah amounting to a maximum of IDR750 billion IDR250 billion, respectively which will be used for MYOR’s expansion plan. The outlook of the corporate rating is “Stable”.  The ratings reflect the Company’s strong position in the domestic packaged food market, well diversified product offering with the increasing contribution from overseas market, and extensive distribution coverage.  However, the ratings are constrained by the Company’s exposure to the fluctuation of raw material costs and relatively aggressive capital structure. (source)

INDONESIA - RATNGS - Fitch rates Indosat BBB and the upcoming Indosat Sukuk Ijara AAA (Ind)

www.reuters.com - (The following was released by the rating agency) JAKARTA/SINGAPORE/SYDNEY, April 30 (Fitch) Fitch Ratings has upgraded Indonesia-based P.T. Indosat Tbk's (Indosat) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to 'BBB' from 'BBB-'. The Outlook is Stable.
Its foreign currency senior unsecured rating has also been upgraded to 'BBB' from 'BBB-'. At the same time, the agency has assigned Indosat a National Long-Term Rating of 'AAA(idn)' and 'AAA(idn)' ratings to its proposed bond and sukuk ijarah with maximum issuance of IDR2.5trn and IDR500bn respectively.  (source)

INDONESIA - CAPITAL MARKETS - Bonds and Sukuk Mayora Natural Excess Demand

investor.co.id - JAKARTA-The demand for bonds and sukuk mudaraba IV offered by PT Mayora Indah Tbk was oversubscribed by nearly five-fold, following a high investor interest in the two instruments.
Corporate Secretary PT Mayora Indah Tbk, Yuni Gunawan in a written statement received here on Tuesday (24/4) states, a manufacturer of processed foods that offer bonds with a term of seven years and the emission maximum of Rp500 billion.
While sukuk mudaraba sukuk offer is for a period of five years with the emission maximum of Rp250 billion. Bonds and sukuk were issued without a script, while the interest on the bonds and sukuk mudaraba revenue sharing will be paid every three months.  (source)

INDONESIA - RATINGS - Bank Muamalat

new.pefindo.com - PEFINDO assigned its “idA+” rating to PT Bank Muamalat Indonesia Tbk (BBMI or the Bank) with a ‘stable’ outlook. The rating reflects the strong support from Islamic Development Bank (IDB), high growth potential of sharia banking segment, and BBMI’s strong market position. However, the rating is constrained by the Bank’s increasing pressure in capitalization profile and moderate profitability performance. (source)

INDONESIA - CAPITAL MARKETS - Indonesia’s Credit Quality a Concern On Vague Budget-Deficit Cutting Plan

www.thejakartaglobe.com - Indonesia’s bond market is showing President Susilo Bambang Yudhoyono’s about-face on fuel subsidies has curbed investor concern over inflation this year, while doing nothing to reduce longer-term price-increase expectations.

Yields on 8.8 percent Islamic notes due in April 2014 have fallen 16 basis points since the March 30 subsidies decision to 2.37 percent on Friday, compared with a drop of four basis points to 3.60 percent for 4 percent Shariah-compliant securities due in November 2018, according to data compiled by Bloomberg. The yield premium on the longer-dated bonds was 136 basis points on April 11, the most since March 6.  (source)

INDONESIA - CAPITAL MARKETS - PT Mayora Rp 250 billion Sukuk Issue

WWW.REPUBLIKA.CO.ID, JAKARTA - Manufacturers of processed foods, PT Mayora Indah Tbk, a public expose in order to conduct a public offering of sukuk mudaraba Mayora Indah II in 2012.

PT Mayora offer sukuk mudaraba the emission value of Rp 250 billion. "Sukuk Mudharabah is offered without papers," said Director General and Operations PT Mayora, David Atmadja, Monday (9/4).

Sukuk Mudharabah has offered a five-year tenor. Revenue sharing for sukuk tesebut paid every three months. By PT Indonesia Rating Agency (Pefindo) sukuk is ranked AA-(Double A minus). (source)

INDONESIA - RATINGS - Bank Danamon Indonesia Tbk. outlook positive

www.pefindo.com - PEFINDO puts Positive Outlook to PT Bank Danamon Indonesia Tbk. (BDMN or the Bank) and to PT Adira Dinamika Multi Finance Tbk (ADMF or the Company), the automotive financing subsidiary of BDMN, due to the potential improvement in the Bank’s and the Company’s businesses and financial profiles as a result of BDMN’s shares acquired by DBS Group of Singapore. The acquisition would eventually support BDMN and ADMF in creating a stronger presence in Indonesian banking and financing industry, respectively. It is also expected to strengthen BDMN and ADMF funding franchise.  (source)