Fitch: Maybank Indonesia bonds AAA(idn), AA(idn)

Fitch Ratings said it assigned an AAA(idn) national rating to PT Bank Maybank Indonesia Tbk.’s proposed issuance of Sharia senior bonds of up to Rp 700 billion with a maturity of three years.

The agency also said it assigned an AA(idn) rating to the bank’s subordinated bonds of up to Rp 800 billion with a maturity of seven years.

The bonds are issued under Maybank Indonesia’s existing debt programs and the proceeds will be used to support the bank’s business growth, Fitch said.

The AAA long-term national rating denotes the highest rating assigned for this country, the agency explained.

The AA rating denotes expectations of low-default risk relative to other issuers or obligations in the same country, Fitch said.

The proposed senior debt is rated at the same level as Maybank Indonesia’s national long-term rating as it constitutes direct, unsubordinated and senior unsecured obligations of the company and ranks equally with all other unsecured and unsubordinated obligations, the agency said.

The proposed subordinated debt is rated two notches below Maybank Indonesia’s national long-term rating – one notch for loss severity and one notch for non-performance risk, Fitch said.

The notes will represent direct, subordinated and unsecured obligations of the bank and rank equally with all its other unsecured and subordinated obligations, the agency added.

The ratings reflect the high likelihood of support from the bank’s higher-rated parent, Malayan Banking Bhd. (Maybank), Fitch said.

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