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Fitch affirms ratings of 3 Indonesian banks

Fitch Ratings Indonesia affirmed the ratings of ,PT Bank Danamon IndonesiaTbk and PT Bank PanIndonesia Tbk.

The rating agency said April 28 that it affirmed BankCentral Asia's long- and short-term issuer default ratings at BBB- and F3,respectively. The bank's viability rating was affirmed at "bbb-,"while its support rating and support rating floor were affirmed at 3 and BB+,respectively.

Bank Danamon Indonesia's long- and short-term issuer defaultratings were affirmed at BB+ and B, respectively, while its viability ratingwas affirmed at "bb+." The bank's support rating and support ratingfloor were affirmed at 3 and BB, respectively.

Fitch also affirmed Bank Panin's long- and short-term issuerdefault ratings at BB and B, respectively, and its viability rating at "bb."The bank's support rating and support rating floor were affirmed at 3 and BB,respectively.

The ratings outlooks are stable.

Bank Central Asia's ratings reflect Fitch's view that itsstrong credit fundamentals will continue to be underpinned by its businessmodel. The credit profile is constrained by the bank's operating environment.Further, Fitch said Bank Danamon's ratings reflect its relatively weakerfunding profile and internal capital generation, counterbalanced by a strongcapital profile.

Bank Panin's ratings reflect its modest and weaker earningscompared with other Indonesian banks.

Bank Central Asia's ratings may be upgraded if the operatingenvironment improves. For Bank Danamon, the ratings may be upgraded if there ismaterial improvement in its franchise, leading to improved funding andliquidity metrics.

Bank Panin's ratings may be downgraded if rapid loanexpansion negatively affects its capital and funding position in a difficulteconomy. Sustained improvements in its ability to generate capital andprofitability would be positive for its viability rating.