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Fitch upgrades ratings of Indonesia's Bank OCBC NISP

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Fitch upgrades ratings of Indonesia's Bank OCBC NISP

Fitch Ratings upgraded the ratings of Indonesia's PT Bank OCBC NISP Tbk.

The rating agency said March 16 that it upgraded the bank's long-term local-currency issuer default rating to A from A- and its viability rating to "bb+" from "bb," with a stable outlook.

The ratings upgrade follows an upgrade on Indonesia's sovereign rating to BBB from BBB- in December 2017, as well as a view that support from the bank's parent, Singapore-based Oversea-Chinese Banking Corp. Ltd., will remain strong, even in the case of high sovereign or macroeconomic stress.

The upgrade on the lender's viability ratings reflects Fitch's view of the sustained improvement in its franchise, as well as in its funding and liquidity profile.

Fitch notes that Bank OCBC NISP's long-term local-currency issuer default rating is sensitive to changes in the country's sovereign and its parent company's ratings.

Meanwhile, Fitch also affirmed the long- and short-term foreign-currency issuer default ratings of Bank OCBC NISP, PT Bank CIMB Niaga Tbk and PT Bank Maybank Indonesia Tbk at BBB and F3, respectively. The viability ratings of Bank CIMB Niaga and Bank Maybank Indonesia were also affirmed at "bb."

The national long- and short-term ratings of PT Bank UOB Indonesia were affirmed at AAA(idn) and F1+(idn), respectively. PT CIMB Niaga Auto Finance and PT Maybank Indonesia Finance's national long-and short-term ratings were also affirmed at AA+(idn) and F1+(idn), respectively, while the national long- and short-term ratings of PT Wahana Ottomitra Multiartha Tbk were affirmed at AA-(idn) and F1+(idn), respectively.

Bank CIMB Niaga and CIMB Niaga Auto Finance are units of Malaysia's CIMB Group Holdings Bhd., while Bank Maybank Indonesia, Maybank Indonesia Finance and Wahana Ottomitra Multiartha are majority owned by Malayan Banking Bhd. Bank UOB Indonesia is a unit of Singapore's United Overseas Bank Ltd.