Jasindo Ratings Lowered; On S&PWatch-Negative.MELBOURNE--(BUSINESS WIRE)--Standard & Poor's CreditWire 1/9/98 -- Standard & Poor's today lowered its claims-paying ability rating and issuer credit rating on government-owned, general insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. P.T. Asuransi Jasa Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. (Jasindo) to triple-'B'-minus from triple-'B', and placed the ratings on CreditWatch with negative implications. The rating actions reflect the continued turmoil in the Indonesian economy and financial markets, and follow Standard & Poor's downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. today of the Republic of Indonesia's local currency rating to triple-'B' from triple-'B'-plus, and foreign currency rating to double-'B' from double-'B'-plus. Indonesia's ratings were placed on CreditWatch with negative implications. The downgrade of Jasindo reflects the impact of the economic and financial difficulties in Indonesia on Jasindo's financial position as follows: -- A decline in the value of the company's equity and bond investment assets and potential loss of bank deposits through increased risk of bank default; -- Exposure to infrastructure transactions, with those transactions now operating in a higher-risk environment with higher interest costs; and -- Support from the government now diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , given the additional burden on public finances caused by the rupiah's sharp depreciation and increased government debt servicing costs. The economic problems should not overly impact Jasindo's underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results, although premium volume may decline through reduced economic activity. The CreditWatch placement is expected to be resolved by the end of January January: see month. 1998, following a further review by Standard & Poor's of the Indonesian insurance and banking sectors, Standard & Poor's said. -- CreditWire CONTACT: Michael Vine, Melbourne (61) 3-9250-4542 Copyright 1998, Standard & Poor's Rating Services |
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