(The following was released by the rating agency)
JAKARTA/SEOUL/SINGAPORE, February 18 (Fitch) Fitch Ratings
has assigned Indonesia-based PT Bank Tabungan Negara (Persero)
TBK's (BTN) proposed IDR2trn bonds with a maturity of 10 years a
National Long-Term 'AA(idn)' rating. This is the second bond to
be issued under BTN's IDR4trn bond programme and the proceeds
will be used for business expansion.
Rating Action Rationale
The senior bonds are rated the same level as BTN's National
Long-Term rating and its bond programme's rating of 'AA(idn)',
as they reflect direct, unconditional, unsecured and
unsubordinated obligations of the bank.
BTN's ratings reflect likely continuing state support in
times of need. This is due to the government's majority
ownership, as well as the bank's systemic importance to the
domestic economy and its policy role in providing subsidised
financing for low-cost housing in support of the government's
Rating Drivers and Sensitivities
Increased systemic importance may benefit the bank's rating
although this is unlikely given that BTN is much smaller than
Indonesia's other three state-owned banks by total assets.
Negative rating action would likely arise if the propensity of
state support for BTN is to weaken, due to a reduced systemic
importance or waning significance of its mandate in the domestic
BTN is Indonesia's 10th-largest bank in Indonesia and its
largest mortgage provider.