SINGAPORE (Standard&Poor's) April 15, 2005--Standard&Poor's Ratings Services said today that the probe of improper lending practices in PT Bank Mandiri (Persero) (Bank Mandiri; foreign currency B+/Positive/B; local currency BB-/Stable/B) reflects the high operational risk in the Indonesian banking sector. On Bank Mandiri, it is nevertheless, too premature to determine the impact on the bank following the Attorney General Office's (AGO) current probe, which could result in estimated losses of Indonesian rupiah (Rp) 1 trillion (US$110 million). The AGO's investigation relates to allegations that the bank's lending practices have not adhered to the bank's internal credit policies. The estimated losses are the equivalent of one-fifth of the bank's net profit for 2004, or about 4% of shareholders'
