Fitch rates Bank Sulut bonds A(idn), BBB-(idn)

Fitch Ratings said it assigned a national long-term rating of A(idn) to PT Bank Sulut’s proposed a senior bond with maturity of five years.

The agency also said it assigned a national long-term rating of BBB-(idn) to the bank’s subordinated debt with maturity of seven years.

The senior bond will be up to Rp750 billion and the subordinated debt will be up to Rp250 billion.

The proceeds will be used to support the bank’s business growth, Fitch said.

The ratings reflect a view that the regional government has the propensity to provide extraordinary support to the bank, if needed, given its majority of ownership in the bank, the agency said.

The ratings also take into account potential, but limited, support from the central government given Bank Sulut’s important role in supporting development in the regional economies in Sulawesi Utara, Fitch said.

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