The ratings on PT Bank Mandiri (Persero) (Mandiri) reflect the credit quality of its asset book that is dominated by the local currency government recapitalization bonds. The less severe operating environment, together with the bank's internal measures, has allowed Mandiri to improve its financial profile. To improve profitability, Mandiri has disposed of some of its government bonds through trading securities, and has more actively managed its deposit rates and funding structure. While efforts have been made, it has not been easy for Mandiri to rebuild its productive loan assets, given the bank's traditional focus on corporate lending and the subdued demand for such loans. Supporting the ratings, also, is Mandiri's position as Indonesia's largest bank, where it commands a market
