Action follows sovereign rating move
Singapore, January 17, 2011 -- Moody's Investors Service has raised the foreign currency long-term
deposit ratings of 10 Indonesian banks to Ba2 from Ba3. The revised
ratings carry stable outlooks.
The 10 banks are Bank Central Asia, Bank CIMB-Niaga,
Bank Danamon Indonesia, Bank Internasional Indonesia, Bank
Mandiri, Bank Negara Indonesia, Bank Permata, Bank Rakyat
Indonesia, Bank Tabungan Negara and Pan Indonesia Bank.
The upgrades conclude the reviews initiated on December 1, 2010
and are in line with the rating actions on January 17, 2011 for
Indonesia's ratings. Specifically, the foreign currency and
local currency government bond ratings were raised to Ba1 from Ba2;
foreign currency deposit ceiling to Ba2 from Ba3, and foreign currency
bond ceiling to Baa3 from Ba1. See press release of January 17,
2011 for more details on sovereign issues.
RATINGS RATIONALE
PREVIOUS RATING ACTION AND PRINCIPAL METHODOLOGIES
The last rating actions on all ten banks were taken on December 1,
2010 when their Ba3 foreign currency long-term deposit ratings
were placed on review for possible upgrade. The reviews were in
line with the review initiated on December 1, 2010 for Indonesia's
Ba2 foreign currency and local currency government bond ratings;
Ba3 foreign currency deposit ceiling, and Ba1 foreign currency bond
ceiling.
The principal methodologies used in this rating were Bank Financial Strength
Ratings: Global Methodology published in February 2007, and
Incorporation of Joint-Default Analysis into Moody's Bank Ratings:
A Refined Methodology published in March 2007.
All 10 banks are headquartered in Jakarta. Below are details of
their assets at September 2010:
Bank Central Asia IDR310.20 trillion; Bank CIMB-Niaga
IDR129.14 trillion; Bank Danamon Indonesia IDR105.22
trillion; Bank Internasional Indonesia IDR72.20 trillion;
Bank Mandiri IDR409.37 trillion; Bank Negara Indonesia IDR224.81
trillion; Bank Permata IDR66.88 trillion; Bank Rakyat
Indonesia IDR325.94 trillion; Bank Tabungan Negara IDR63.50
trillion; and Pan Indonesia Bank IDR95.73 trillion.
The detailed ratings and actions are:
Bank Central Asia: The foreign currency long-term deposit
rating was raised to Ba2 from Ba3. The revised rating carries a
stable outlook. All other ratings were unaffected and have stable
outlooks: Baa3 global local currency (GLC) deposit; Ba1 foreign
issuer; Not Prime foreign currency short-term deposit;
and D+ bank financial strength (BFSR), which maps to a Ba1
baseline credit assessment (BCA).
Bank CIMB-Niaga: The foreign currency long-term deposit
rating was raised to Ba2 from Ba3. The revised rating carries a
stable outlook. All other ratings were unaffected and have stable
outlooks: Baa3 GLC deposit; Ba1/Ba1 foreign currency issuer/subordinated
debt; Not Prime foreign currency short-term deposit;
and D BFSR, which maps to a Ba2 BCA.
Bank Danamon Indonesia: The foreign currency long-term deposit
rating was raised to Ba2 from Ba3. The revised rating carries a
stable outlook. All other ratings were unaffected and have stable
outlooks: Baa3 GLC deposit; Not Prime foreign currency short-term
deposit; and D BFSR, which maps to a Ba2 BCA.
Bank Internasional Indonesia: The foreign currency long-term
deposit rating was raised to Ba2 from Ba3. The revised rating carries
a stable outlook. All other ratings were unaffected and have stable
outlooks: Baa3 GLC deposit; Ba1 foreign currency issuer;
Not Prime foreign currency short-term deposit; and D BFSR,
which maps to a Ba2 BCA.
Bank Mandiri: The foreign currency long-term deposit rating
was raised to Ba2 from Ba3. The revised rating carries a stable
outlook. All other ratings were unaffected and have stable outlooks:
Baa3 GLC deposit; Not Prime foreign currency short-term deposit
and D BFSR, which maps to a Ba2 BCA.
Bank Negara Indonesia: The foreign currency long-term deposit
rating was raised to Ba2 from Ba3. The revised rating carries a
stable outlook. All other ratings were unaffected: Baa3 GLC
deposit; Not Prime foreign currency short-term deposit and
D- BFSR, which maps to a Ba3 BCA. All carry stable
outlooks except the BFSR which has a positive outlook.
Bank Permata: The foreign currency long-term deposit rating
was raised to Ba2 from Ba3. The revised rating carries a stable
outlook. All other ratings were unaffected and have stable outlooks:
Baa3 GLC deposit; Not Prime foreign currency short-term deposit;
and D- BFSR, which maps to a Ba3 BCA.
Bank Rakyat Indonesia: The foreign currency long-term deposit
rating was raised to Ba2 from Ba3. The revised rating carries a
stable outlook. All other ratings were unaffected and have stable
outlooks: Baa3 GLC deposit; Not Prime foreign currency short-term
deposit and D+ BFSR, which maps to a Ba1 BCA.
Bank Tabungan Negara: The foreign currency long-term deposit
rating was raised to Ba2 from Ba3. The revised rating carries a
stable outlook. All other ratings were unaffected and have stable
outlooks: Baa3 GLC deposit; Not Prime foreign currency short-term
deposit and D- BFSR, which maps to a Ba3 BCA.
Pan Indonesia Bank: The foreign currency long-term deposit
rating was raised to Ba2 from Ba3. The revised rating carries a
stable outlook. All other ratings were unaffected and have stable
outlooks: Baa3 GLC deposit; Not Prime foreign currency short-term
deposit; and D BFSR, which maps to a Ba3 BCA.
REGULATORY DISCLOSURES
Information sources used to prepare the credit rating are the following:
parties involved in the ratings and public information.
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purposes of maintaining
a credit rating.
Moody's adopts all necessary measures so that the information it uses
in assigning a credit rating is of sufficient quality and from sources
Moody's considers to be reliable including, when appropriate,
independent third-party sources. However, Moody's
is not an auditor and cannot in every instance independently verify or
validate information received in the rating process.
Please see ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Investors Service's Credit Ratings were fully digitized
and accurate data may not be available. Consequently, Moody's
Investors Service provides a date that it believes is the most reliable
and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com
for further information.
Please see the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
Singapore
Beatrice Woo
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Singapore Pte. Ltd.
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SUBSCRIBERS: (65) 6398-8308
Hong Kong
Stephen Long
MD - Financial Institutions
Financial Institutions Group
Moody's Investors Service Hong Kong Ltd.
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Moody's raises FC deposit ratings of 10 Indonesian banks to Ba2