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STANDARD & Poor's last Friday downgraded four of Thailand's weakest banks and placed the financial strength ratings of two of the kingdom's largest banks under review for possible downgrade. The agency cut the Ba1 (senior debt), E+ (financial strength) ratings of First Bangkok City Bank, Siam City Bank, Bangkok Metropolitan Bank and Bank of Asia to B1 and E respectively, while the subordinated debt ratings were lowered to B3. The agency said that its action reflected the increasing uncertainty over the treatment of creditors at Thailand's weaker banks.

IN A similar move to the Australian government's recent airport privatisations, the New Zealand government and a consortium of local councils will decide by May how to proceed with the sale of around 54% of 210m existing shares in Auckland International Airport Ltd (AIAL). Investment bankers say the divestment will probably involve a combination of a trade sale and a public flotation, with the Crown and one or more of the airport's local government shareholders selling stock.

THE PEREGRINE group's chances of wooing a buyer for its key assets improved yesterday (Thursday) when liquidators received approval to distribute wages to the firm's remaining staff. Uncertainty as to whether employees would be paid in order to avoid an exodus of talent has become an issue in the sale prospects of Peregrine's equity businesses.

* A HK$1bn fixed rate bond for the World Bank was launched last Friday by HSBC Markets. With a three year tenor, the deal was priced at par with a semi-annual coupon of 11% to yield 11.303% on an annualised basis. With fees totalling 18.75bp, co-leads are BNP (Hong Kong) and Deutsche Morgan Grenfell. The World Bank's deal was followed at the beginning of this week by a HK$300m private placement for the International Finance Corporation under sole lead manager Société Générale. With a two year maturity, the issue has a quarterly coupon of 11.5%. The issue price was not disclosed.

The major rating agencies dealt a new blow to Indonesia's crippled banking sector this week following the announcement of a wave of mergers to shore up the sector. On Tuesday, Standard & Poor's placed its B+ rating on Indonesia's largest private bank PT Bank Internasional Indonesia (BII) and its Bpi long term rating on PT Bank Dagang Nasional Indonesia (BNDI) on CreditWatch. Under the terms of the merger which is subject to regulatory approval, the two banks -- BII, owned by the Sinar Mas group, and BDNI, owned by the Gajah Tunggal group -- will absorb three small banks, namely PT Bank Tiara Asia, PT Bank Sahid Gajah Perkas and PT Bank Dewa Rutji.

AMP Ltd, Australia's largest insurance and fund management group, announced a new corporate restructuring this week following the first stage of its demutualisation earlier this year, moving the company closer to listing on the Australian and New Zealand stock exchanges. The company will divide into four financial services categories: Australian Financial Services, UK operations, asset management and general insurance.

DALIAN REFRIGERATION'S $40m B-share IPO is still set to come to the market, although its pricing and listing schedule has been delayed as lead manager DBS Asia Capital negotiates with the issuer to lower the price range. "It's not a bad company and it has good fundamentals, but Dalian will have to choose between raising money now or waiting for the market to revive," said one Hong Kong based analyst. "B-shares are touching new lows."

ROGER DAVIS, the former chairman and chief executive of BZW Asia, has been appointed to a similar role in Barclays Capital Asia Pacific. Barclays Capital is the reformed investment banking division of the Barclays Group which integrates international debt, lending and risk management products.

A TRIO of equity-linked deals from Taiwan are being primed for launch over the next two months, despite the failure last week of an $80m convertible by Orient Semiconductor Electronics Ltd (OSE). Bankers are hopeful that, although renewed stockmarket volatility forced the postponement of the Salomon Smith Barney-led issue for IC packager OSE, investor interest remains sufficiently strong to contemplate at least two issues from the republic during February.

NEGOTIATIONS to resolve Korea's short-term debt crisis continued to drag on in New York this week. The Seoul government was perceived to be playing an increasingly dangerous game of brinkmanship in its efforts to bring down pricing levels and JP Morgan, leader of a pro- posed commercial bank debt exchange, was effectively sidelined by greater inter-governmental negotiations.

AN IPO for BTR plc's building products group (Group) worth an estimated A$3bn looks likely to emerge during the first half as the recently appointed lead managers JB Were and BZW Australia begin preparations for a possible float. A spokesperson for the company said: "The sale is in line with BTR's intention to divest the group either through a flotation of shares on the Australian stock exchange, or by sale to a trade purchaser. This dual track process is continuing."

THE FEDERATION of Malaysia is poised to make its first visit to the international bond markets since 1990 with plans to refinance a ¥30bn Samurai bond that falls due in March via a new yen denominated issue. Rather than suffer a currency hit as a result of the collapsing ringgit, the government has decided to roll-over the debt with a new issue. Bankers, however, are divided as to whether the government would seek to issue a new Samurai bond or opt for a yen denominated loan which might offer finer pricing.