S&P lifts Bank Mandiri view to positive

S&P said it revised the outlook on PT Bank Mandiri (Persero) to positive from stable.

The agency also said it affirmed the bank's BB+ long-term and B short-term issuer credit ratings.

S&P also said it revised the outlook because the bank's asset quality is expected to improve over the next 12- to 18-months, coming closer to that of the industry and peers.

The bank's portfolio rebalancing strategy and tighter underwriting in the mid-sized corporate segment will underpin the improvement, the agency said.

Bank Mandiri's non-performing loans and credit costs have declined consistently over the past two years as the bank has recognized and provided for most of its problem loans, S&P said.

The ratings also consider the bank's dominant market position, majority deposit-funded liabilities profile and strong liquidity position to meet short-term obligations, the agency said.

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