Fitch lifts Bank Tabungan, rates KEB Hana BBB

Fitch Ratings said it upgraded the national long-term rating of PT Bank Tabungan Pensiunan Nasional Tbk. to AAA(idn) from AA+(idn).

The agency also said it affirmed the national long-term ratings of PT Bank KEB Hana Indonesia and PT Bank ICBC Indonesia at AAA(idn).

Fitch also said it affirmed the national short-term ratings of the three banks at F1+(idn).

The agency also said it assigned a long-term foreign-currency issuer default rating of BBB to KEB Hana Indonesia, along with a long-term local-currency issuer default rating of BBB+, short-term foreign-currency issuer default rating of F3 and viability rating of BB-.

The outlooks are stable.

KEB Hana Indonesia and Bank Tabungan have maintained satisfactory capital profiles thanks to support of their parent companies, Fitch said.

The loan and deposit ratios of KEB Hana Indonesia and Bank ICBC Indonesia are likely to remain high in the near term as the banks’ seek higher loan growth, the agency said.

But the liquidity risks associated with high loan growth are mitigated by liquidity support from the parent banks, which Fitch said it expects to be forthcoming in times of need.

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