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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: tom who wrote (575)	1/8/1998 11:04:00 AM
From: Thomas Haegin	Read Replies (1) \| Respond to of 9980

TO ALL: Moody's teleconference Hope this will be a goodie! The below text has reached my by fax on paper. I have to retype it for the board, going the extra mile for you folks <g>. Moody would probably kill me for posting it here and possibly causing a jam on their lines, but I'll take the risk <g>. In any case, may be an interesting event, if only to hear the consensus opinion. Maybe someone of you has the equipment to tape the conference and post a condensed summary afterwards. It will be crippling to my phone bill to listen to the whole conference, but for folks from the US it should be free I think. Maybe we can manage that not the whole board is dialing in but only the one with recording equipment and we can buy a copy of the cassette from him at nominal costs. That would be great! Offers anyone? greetings, Thomas ---------Start------------- Moody's Investors Services - Global Credit Research Teleconference: Discussion of Asian Sovereigns Friday, January 9, 1998, 10:00 A.M. (N.Y. Time) Dear Investor: Moody's is pleased to invite you to a teleconference discussing Asian Sovereigns to be held on Friday, Jan 9 at 10:00 AM (N.Y. Time). The speakers will be Vincent Truglia, Managing Director; Tom Byrne, Vice President, Senior Analyst and Steve Hess, Vice President, Senior Analyst. Moody's has taken a series of ratings actions over the past few weeks and this call is primarily intended to allow clients of Moody's to discuss any questions or concerns they may have regarding Asian Sovereigns. To participate please use the following dialing instructions: If calling for the United States or Canada dial 1-800-857-4257 with the password "ASIA" 10 - 15 minutes prior to the start of the call. If calling from an international location please dial (US country code) then 630-395-0019 with the password "ASIA" 10 - 15 minutes prior to the start of the call. After dialing the number an operator will ask you to hold until the call begins at which time you will be placed into the conference. ---------End----------

To: tom who wrote (575)	1/8/1998 7:22:00 PM
From: Thomas Haegin	Respond to of 9980

Repost: FITCH DOWNGRADES REPUBLIC OF INDONESIA'S FOR. CURRENCY RATING Tom, this one is for you in particular. Greetings, Thomas --------Start------------ Futures World News - January 08, 1998 10:38 New York-Jan. 8-FWN--FITCH IBCA TODAY DOWNGRADED THE Republic of Indonesia's long-term foreign currency rating to 'BB-' from 'BB+,' the ratings agency said. The rating action is a result of political and policy uncertainty in the wake of the 1998 budget proposals and the country's consequent failure to maintain the confidence needed to roll over the high level of external debt, according to Fitch. The short-term foreign currency rating is maintained at 'B' but the long-term local currency rating is downgraded to 'BBB-' from 'BBB+'. These ratings apply to public and publicly guaranteed senior, unsecured debt and set a ceiling for all other Indonesian entities. The long-term foreign currency rating of Bank Dagang Nasional Indonesia is duly downgraded by two notches to 'BB-' and is now constrained by the sovereign ceiling, the ratings agency said. "The tabling of unrealistic budget proposals which publicly flout recently agreed targets with the International Monetary Fund (IMF) is a severe blow to confidence in Indonesia's willingness to maintain appropriate economic policies and comes after delays in the implementation of structural reforms," Fitch said. "Indonesia's strong policy track record has been an essential underpinning for its ratings, as it is the fourth largest debtor in the developing world with estimated gross external debts approaching US$120 billion, equivalent to almost 200% of foreign exchange receipts. "In addition, the deteriorating economic situation is raising political stresses within Indonesia, since the Suharto regime has drawn much of its legitimacy from economic success. This may increasingly complicate the succession to the aging President. A third factor in the downgrade is that Indonesia's export earnings will be hit by the recent falls in oil prices, since it is a major oil exporter. "Fourthly, the sharp fall in the rupiah in recent days has also put enormous financial stress on the country's corporate sector and this in turn will raise the credit risks faced by the Indonesian banking system. This may complicate the task of rolling over short term credit lines to Indonesia," Fitch noted. "Even though short-term external debt is believed to represent a smaller proportion of total external debt than Korea or Thailand, doubt remains as to the actual levels of nonbank private sector debt. Likewise, data on all external debts falling due over coming months have not been available from the authorities, complicating any assessment of the external liquidity position and, hence, the adequacy of the IMF rescue package. "Given the uncertain outlook, the sovereign rating remains on RatingWatch with negative implications." --------End----------