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Fitch affirms ratings of 4 foreign-owned Indonesian banks


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According to Market Intelligence, April 2023

Fitch affirms ratings of 4 foreign-owned Indonesian banks

Fitch Ratings affirmed the ratings of four foreign-owned Indonesian banks given the likelihood of support from their parent banks.

The four banks are PT Bank KEB Hana Indonesia, PT Bank Woori Saudara Indonesia 1906 Tbk, PT Bank ICBC Indonesia and PT Bank Tabungan Pensiunan Nasional Tbk.

KEB Hana Indonesia's long-term foreign- and local-currency issuer default ratings were affirmed at BBB and BBB+, respectively. Its short-term issuer default rating was affirmed at F3 and its viability rating was affirmed at "bb-". The bank's national long-term rating was affirmed at AAA(idn) and national short-term rating at F1+(idn).

Bank Woori Saudara, ICBC Indonesia and Bank Tabungan Pensiunan's national long-term ratings were affirmed at AAA(idn) and their national short-term ratings were affirmed at F1+(idn).

The outlooks are stable.

Fitch believes that support from the banks' parent are likely given that they are strategically important subsidiaries that support their parent's goals of business growth in emerging Asia.

KEB Hana Indonesia's ratings may be upgraded if Indonesia's country ceiling is similarly upgraded. There is no ratings upside for the four banks' national ratings as they are already at the top of the scale.

Downward ratings pressure may arise from any development leading to the perceived weakening of support from their parents.