(Repeat for additional subscribers)
May 26 (The following statement was released by the rating agency)
Fitch Ratings has affirmed the National Long-Term rating of PT Bank Muamalat Indonesia Tbk
(Muamalat) at 'A (idn)' and PT Bank Mayapada International Tbk (Mayapada) at 'A-(idn)'.
Outlook is Stable. Fitch also set a National Short-term rating at 'F1 (idn) to Muamalat and
Mayapada. A complete list of results ranking available at the end of this report.
National ranking in the category ' A ' indicates the expectation would risk failure
low pay relative to other issuers or securities inIndonesia. However, a change in circumstances
or economic conditions may beaffect the capacity to pay in a timely manner than commitment
Financial shown by the higher rating categories .
F1 (idn )
National Rating ' F1 ' indicates the capacity to pay financial commitments
The most powerful in a timely manner relative to other issuers or debt securities
in Indonesia . National rating scale of Fitch , the ratings given
the lowest default risk relative to the rest of Indonesia .
If specific liquidity profile is strong, a "+ " is added to the
ratings given .
Activator Factor Rating - National Rating .
The ratings reflect the probability of Muamalat limited above
support from the government , if necessary , given the important role Muamalat
in the development of Islamic banking in Indonesia . Muamalat is Islamic bank
The second largest by assets in Indonesia, although the market share of banks
accounting for only about 1 % of total system assets . Islamic banking assets
formed approximately 4.8 % of the total assets of the system in 2013. In the assessment
standalone , Muamalat has a franchise , profitability and capital
not as strong as the larger banks other .
Transactions NPL ratio deteriorated in 1Q14 mainly due to credit growth
high in three years anyway . Backup still below average
industry in the period. In Fitch outlook , asset quality Transactions
have the possibility to come under pressure in the economic conditions
increasingly challenging in 2014. Though Fitch core capital of banks increased to 11.9 %
at the end of 2013 from 7.1 % at the end of 2012 - mainly due to the size issue right
IDR3.5tn - capitalization can be easily eroded by credit growth
ongoing high in the medium term .
The stages of Mayapada reflect Fitch views that the bank
owning a franchise is smaller than the other banks are more
large , resulting in the probability of government support will be limited , if
needed. The tender stage , also consider the bank 's performance adequate
with adequate capitalization , modest profitability and asset quality
Profitability of banks rated likely to be under pressure given
absence of expectation of increase in the cost of credit and financing . quality of assets
Mayapada improved in April 2014 due to the bank's risk management more
tight . In its efforts to memperjuat capital , has issued Mayapada
subordinated loans amounting to IDR700 billion rights issue and by
IDR300 billion in 2013. Further developments for the franchise Mayapada
assessed is limited due to the increasing competition in the market .
Mayapada able to keep the loan -to-deposit ratio at 87 % in late 2013
due to the expansion of deposits that can keep pace with credit growth .
However , high-cost deposits are not a form of demand deposits and savings
approximately 86 % of total deposits at the end of 2013 .
Stable outlook reflects Fitch's expectation that the two banks will
maintain a stable risk profile by proactively shapingreserves in the medium term amid an
increasingly challenging economic conditionswhich can lead to increase in non-performing loans .
Competition in the savings andinterest rates higher savings can hamper collection efforts
and can reduce the liquidity of the two banks , which have more franchise
small compared with other banks greater .
Sensitivity Ranking - National Rating
Improved rankings can occur on both banks of improvement
sustainable in terms of asset quality, maintaining profitability levels
strongly adapted to the risks and high capital and domination
of low cost deposits in the balance sheet. Negative effect of debt action
can occur from a significant deterioration in asset quality and attenuation
Muamalat and Mayapada profitability and reduction in government support
the Islamic banking industry to Muamalat case.
A complete list of ratings is as follows:
Long-Term National Rating affirmed at 'A (idn)'; Outlook Stable
Short-Term National Rating affirmed at 'F1 (idn)'
Long-Term National Rating affirmed at 'A-(idn)'; Outlook Stable
Short-Term National Rating assigned at 'F1 (idn)'