Strong business franchise in the domestic market as the biggest lender in Indonesia. Above-average funding profile and strong liquidity, backed by an extensive branch network and status as a government-owned bank. Persisting asset quality pressure, particularly in the SME segment. High provisioning costs put downward pressure on profitability. The stable outlook on PT Bank Mandiri (Persero) (Mandiri) reflects our expectation that the bank will maintain its strong market position and funding profile over the next 12 months. We anticipate that the bank's asset quality will remain under pressure over the next 12 months. We would upgrade Mandiri if we raise both the sovereign credit rating on Indonesia (BB+/Positive/B; axBBB+/axA-2) and the bank's stand-alone credit profile (SACP) of 'bb+'. It is
