Nov 27 (The following statement was released by the rating agency)
Fitch Ratings has assigned Indonesia-based PT Bank Permata (Permata) a National
Long-Term Rating of 'AAA(idn)'. The Outlook is Stable. Permata is the seventh-largest bank by
assets in Indonesia.
'AAA' National Ratings denote expectations of the lowest default risk relative
to other issuers or obligations in the same country. This rating is assigned to
issuers or obligations with the lowest expectation of default risk relative to
all other issuers or obligations in the same country.
KEY RATING DRIVERS
Fitch rates Permata at 'AAA(idn)', which is the highest rating on national
scale, to reflect the high probability of support from major shareholder
Standard Chartered Bank (SCB, AA-/Stable). Although Fitch views Permata as being
of limited importance to SCB based on its criteria "Rating FI Subsidiaries and
Holding Companies", the agency believes that Indonesia is an important market
for SCB. While SCB only owns 44.56% in the bank, there is a degree of management
oversight as Permata's risk management follows that of SCB and a few key senior
managers come from SCB.
The rating is driven by support from SCB rather than PT Astra International Tbk
(AI), which also owns 44.56% of Permata. Nonetheless, both SCB and AI exercise
oversight through Permata's Board of Commissioners. Fitch also notes that AI is
committed to its investment in the bank. AI is a market leader in the
automotive, agribusiness, heavy equipment and information technology sectors in
Any perceived weakening of support from or significant dilution in ownership by
SCB would put pressure on Permata's National Rating. However, it would take a
multiple notch downgrade of SCB's Long-Term Issuer Default Rating before
Permata's National Long-Term Rating is affected.