Moody's cuts Beta Inti

Moody's Investors Service said it downgraded the Baa3.id national scale debt rating of Beta Inti Multifinance to Ba1.id. This rating action concludes the review for possible downgrade begun on December 15, 2008.

The outlook is negative.

This downgrade reflects the reduced level of Beta's liquidity cushion after the expected repayment of the Rp13.2 billion outstanding bond in Feb, 2009, Moody's said.

The agency said it considers a more diversified liquidity management plan crucial to Beta's rating stability, given its business nature and the challenging liquidity and economic conditions prevalent in Indonesia.

The negative outlook reflects the company's continued refinancing risks in the face of the pressing due date on one banking facility at a time when its liquidity sources are limited, Moody's added.

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