Fitch rates Bank BRISyariah notes A+(idn)

Fitch Ratings Indonesia said it assigned a A+(idn) national long-term rating to PT Bank BRISyariah's proposed issuance of subordinated sukuk of up to Rp 1 trillion with a maturity of seven years.

The proceeds will be used to strengthen the bank's capital structure and support business growth, Fitch said.

The rating on the sukuk considers the bank’s structure and documentation as it will represent direct, subordinated and unsecured obligations and will rank pari passu with all its other unsecured and subordinated obligations, Fitch said.

The securities are rated three notches below the bank’s national long-term rating of AA+(idn), comprising one notch for loss-severity and two notches for non-performance risk, the agency said.

The notching results in a rating for these securities that is similar to the rating that would be assigned had they been issued by the parent bank, PT Bank Rakyat Indonesia (Persero) Tbk, Fitch explained.

The bank’s ratings reflect an expectation of a strong probability of extraordinary support from the parent bank, if needed, the agency said.

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