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Fitch downgrades national ratings of Indonesia's Bank Sinarmas

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Fitch downgrades national ratings of Indonesia's Bank Sinarmas

Fitch Ratings downgrades the national long-term rating of PT Bank Sinarmas Tbk to A-(idn) from A(idn), with a negative outlook.

The rating agency said Sept. 30 that it also affirmed the bank's national short-term rating at F1(idn).

The rating downgrade is driven by the view that PT Sinar Mas Multiartha Tbk's ability to support the unit has weakened, as deterioration in the bank's performance weighs on the parent company's credit profile.

The Indonesian lender's national ratings reflect Fitch's belief of a limited probability of extraordinary support from the parent when needed.

Meanwhile, the negative outlook reflects the risk that further asset quality deterioration could threaten the lender's profitability and capitalization buffers and impair its franchise.