SINGAPORE (Standard&Poor's) May 31, 2005--Standard&Poor's Ratings Services said today that PT Bank Mandiri (Persero)'s (foreign currency B+/Positive/B; local currency BB-/Stable/B) increased regulatory gross non-performing loans (NPLs) in its first-quarter 2005 results is not expected to have an immediate impact on the ratings on the bank. The reported increase in NPLs remains within the tolerance of its rating category and this is expected to be a one-off adjustment in accordance with the central bank's revised asset quality guidelines. For the first quarter of 2005, Bank Mandiri reported an increase in its regulatory gross NPL ratio to 17.8%, from 8.4% in the previous corresponding quarter. This sharp rise in gross NPLs is mainly attributed to certain qualitative factors,
