RPT-Fitch affirms PTBC and ANZI's national ratings; outlook stable
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Oct 21 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has affirmed the National Ratings of two foreign-owned banks in Indonesia, PT Bank Commonwealth (PTBC) and PT Bank ANZ Indonesia (ANZI), at 'AAA(idn)'. Fitch has also affirmed PTBC's National Short-Term Rating at 'F1+(idn)' and its medium term notes (MTN) at 'AAA(idn)'.
The affirmation of the National Long-Term Ratings reflects unchanged parental support and linkage for both banks.
KEY RATING DRIVERS
The National Long-Term Ratings reflect Fitch's view of a high propensity of timely support from the local banks' higher-rated foreign parents, if needed. PTBC is majority-owned by Australia-based Commonwealth Bank of Australia (CBA, 'AA-'/Stable) and ANZI by Australia & New Zealand Banking Group (ANZ; 'AA-'/Stable).
Fitch's view of support is reinforced by the growing strategic importance of these Indonesian subsidiaries to the parents' Asian franchises, the increased financial and technical resources needed to develop their Indonesian banking franchises, the parents' majority ownership/control and shared names with the subsidiaries, and the subsidiaries' ability to benefit from their parents risk-management best practices.
RATING SENSITIVITIES - National Ratings
Downward rating pressure may arise from any developments leading to a weakening of perceived support from their parents, such as major changes to ownership or a significant weakening in their parents' financial ability, although Fitch believes this to be a remote prospect in the near- to medium-term.
RATING SENSITIVITIES - Debt Ratings
The ratings of PTBC' rupiah-denominated senior bonds are the same as their National Long-Term Ratings. This is because these debts constitute direct, unsubordinated and senior unsecured obligations of PTBC and rank equally with all its other unsecured and unsubordinated obligations. Any changes in the National Long-Term Ratings would affect these issue ratings.
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