Fitch Ratings placed the AAA(idn) national long-term rating of Indonesia's PT Bank Permata Tbk on Rating Watch Negative and affirmed its F1+(idn) national short-term rating.

The ratings action came after Bangkok Bank PCL on Dec. 12 said it agreed to buy an 89.12% stake in Bank Permata from PT Astra International Tbk and Standard Chartered Bank for an estimated 37.431 trillion Indonesian rupiah. Fitch said the Indonesian bank will continue to benefit from institutional support and the Rating Watch Negative placement reflects the possibility that the likelihood of receiving support could be lower after completion of the transaction.

Fitch notes that Bank Permata's ratings will also be driven by its assessment of Bangkok Bank's propensity to offer support.

The rating agency will resolve the Rating Watch Negative on Bank Permata upon completion of the acquisition, which is expected to be in the second half of 2020.

As of Dec. 19, US$1 was equivalent to 13,986 Indonesian rupiah.