Outlook On Indonesian Banks Revised To Negative As Operating Conditions Worsen; Ratings Affirmed

Due to challenging operating conditions following the COVID-19 pandemic, we expect Indonesian banks' asset quality to deteriorate, credit costs to rise, and profitability to decline. We have revised the economic risk trend for the banking system to negative from stable. Other banking industry scores are not affected. Consequently, we revised the rating outlook on Indonesian banks to negative from stable. At the same time, we affirmed our issuer credit ratings on these banks, underpinned by the banks' sizable capital buffers. We expect the issuer credit ratings on these banks to come under pressure over the next 12-18 months due to the economic fallout from the COVID-19 pandemic. SINGAPORE (S&P Global Ratings) April 28, 2020--S&P Global Ratings said today that it

...April 28, 2020 - Due to challenging operating conditions following the COVID-19 pandemic, we expect Indonesian banks' asset quality to deteriorate, credit costs to rise, and profitability to decline. We have revised the economic risk trend for the banking system to negative from stable. Other banking industry scores are not affected. - Consequently, we revised the rating outlook on Indonesian banks to negative from stable. At the same time, we affirmed our issuer credit ratings on these banks, underpinned by the banks' sizable capital buffers. - We expect the issuer credit ratings on these banks to come under pressure over the next 12-18 months due to the economic fallout from the COVID-19 pandemic. SINGAPORE (S&P Global Ratings) April 28, 2020--S&P Global Ratings said today that it revised the rating outlook on PT Bank Mandiri (Persero) (Mandiri), PT Bank Rakyat Indonesia (Persero) Tbk. (BRI) and PT Bank Negara Indonesia (Persero) Tbk. (BNI) to negative from stable. This is due to heightened...

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