Moody's: Indonesia banks stable

Moody's Investors Service said the ratings outlook for Moody's 11 rated Indonesian banks is stable, while their financial fundamentals should remain steady.

Indonesian banks have escaped any direct effects of the current global credit turmoil, given the absence of exposures to collateralized debt obligations or structured investment vehicles, Moody's said.

The country's regulators do not permit such investments and bank managements in Indonesia are more concerned about the indirect impact of the sub-prime issue on global macro-economics and hence the Indonesian economy, the agency said.

Importantly, creditworthiness - that is manageable asset quality, modest economic capital solvency, improved profitability and reform - will be broadly sustained, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.