Fitch: Bank Lampung bonds A(idn)

Fitch Ratings said it assigned a national long-term rating of A(idn) to PT Bank Pembangunan Daerah Lampung's (Bank Lampung) proposed senior unsecured bonds IV/2017.

The bank plans to issue up to Rp 750 billion of bonds, which will have a maturity of up to five years.

The proceeds will be used to support Bank Lampung's business growth, Fitch said.

The bonds are rated at the same level as the bank's national long-term rating, the agency said.

The bonds constitute direct, unsubordinated and senior unsecured obligations of Bank Lampung and rank equally with its other unsecured and unsubordinated obligations, Fitch said.

The ratings are driven by the bank's important role in supporting economic growth in the province, the agency said.

Based on its regional significance, Fitch said it expects potential, but limited, extraordinary support from the central government due to its lower systemic importance compared with other large banks in Indonesia.

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