TEXT-Fitch rates Bank's bonds at 'AA-(idn)'

Thu Feb 14, 2013 2:54am EST

Feb 14 - Fitch Ratings gave the National Long-term rating of AA-(idn) on the proposed issuance of bonds PT Retired National Savings Bank (Bank's) for a maximum of IDR750 billion with a maximum period of five years. Bond plan is stage three of the Bank's ongoing program of IDR2.5tn bond where the proceeds will be used for business expansion.

consideration The ranking

Senior bonds were given a rank equivalent to Bank's National Long-Term rating and ranking program bonds at 'AA-(idn)' because the bonds reflect the unconditional obligation, direct, unsecured and subordinated debt is not a bank.

BTPN rating reflects improvement in asset quality, good profitability, strong capitalization relative to peer banks in the country. Non-performing loans amounted to 0.65% and a capital adequacy ratio of 21.59% at the end of Q312, compared with the industry average respectively 2.1% and 17.4%. The ratings also take into account exposure to microfinance banks at high risk, especially when the economy weakens.

Factors Fueling Rating

The pressure to downgrade could occur if asset quality weakened significantly, but Fitch found it less likely to happen in the near or medium term. Limited given the potential increase network ratings are not overly broad and are less diversified business profile.

Founded in 1958, the Bank is a medium-sized open bank that focuses on retirement market. In March 2008, TPG Nusantara Sar1 (TPG) acquired a 71.6% stake in the Bank's. At the end of 2011, TPG has a 57.9% ownership of bank shares and the remainder (42.1%) held by the public.

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