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Fitch downgrades ratings of Indonesia's Bank CIMB Niaga

Fitch Ratings downgraded the long-term foreign currency issuer default rating of PT Bank CIMB Niaga Tbk to BBB- from BBB.

The rating agency said Aug. 13 that it also downgraded the bank's national long-term rating to AA+(idn) from AAA(idn). Fitch affirmed the lender's short-term issuer default rating at F3, its national short-term rating at F1+(idn) and its support rating at 2.

Meanwhile, the rating agency downgraded the national long-term rating of PT CIMB Niaga Auto Finance, a unit of Bank CIMB Niaga, to AA(idn) from AA+(idn). The unit's national short-term rating was affirmed at F1+(idn).

The outlook on both entities is stable.

The rating downgrade is a result of Fitch's revised view of CIMB Bank Bhd., which is aligned with its view of parent CIMB Group Holdings Bhd. due to their integrated management and strategy.

The downgrade also reflects the expectation that key financial indicators for CIMB Bank, which have remained at the lower end of local peers, are not likely to approach levels commensurate with Fitch's previous view.

Bank CIMB Niaga's ratings takes into account Fitch's view that the lender would be highly likely to receive extraordinary support from CIMB Group, if needed, given its strategic importance to the group's Southeast Asian franchise.

CIMB Niaga Auto Finance's ratings reflect the rating agency's expectation that the unit is likely to receive timely extraordinary support from Bank CIMB Niaga, and ultimately CIMB Group, if needed.