(The following statement was released by the rating agency)
Feb 18 - Fitch Ratings gave the National Long-term rating 'AA (idn)' the proposal phase II
bonds to be issued by the PT Bank Tabungan Negara (Persero) Tbk (BTN) by 2 trillion
rupiah for a period of 10 years. These bonds are bonds with a second phase under continuous bond
program amounting to 4 trillion dollars and the proceeds from the bond issuance will be used to
support the company's business expansion.
consideration The ranking
Bonds rated at the same level with BTN's National Long-Term rating at 'AA (idn)' because it
reflects the company's obligation bonds are direct, unconditional obligations, unsecured and
subordinated debt is not a bank.
BTN ratings reflects the possibility of continued support from the state when required. It
is considering a majority government ownership and bank systemic risk to the economy of
Indonesia and policies BTN role in providing subsidized financing for low-cost housing in
support of the government housing program.
Factors Fueling Rating
Increased systemic risk may support bank ratings even though it is likely limited given that
the total assets of BTN is much smaller than the other three state-owned banks. Negative the
rating action is likely to arise if the trend of state support for BTN weakened, due to the
reduced risk of systemic or BTN reduced role in housing loan market.
BTN is the tenth largest bank in Indonesia and the largest bank provider of housing loans.