Fitch: Bank Jambi notes A(idn)

Fitch Ratings said it assigned a national long-term rating of A(idn) to PT Bank Pembangunan Daerah Jambi's (Bank Jambi) proposed senior unsecured medium-term notes I 2017 of up to Rp 125 billion.

The notes will have a maturity of up to three years and proceeds from the issue will be used to support the bank's business growth, Fitch said.

The notes are rated at the same level as Bank Jambi's national long-term rating as they will constitute direct, unsubordinated and senior unsecured obligations of the bank and rank equally with all its other unsecured and unsubordinated obligations, Fitch said.

Bank Jambi's rating reflects that the bank is important to the regional government of Jambi province on Sumatra Island, the agency said.

Bank Jambi is owned by the government of Jambi province, Fitch said. Although Bank Jambi is a small bank in the Indonesian banking industry, it has a strong franchise in Jambi of about 20% market share by assets.

It also has an important role in supporting development in the region, the agency said.

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