Ratings On Three Indonesian State-Owned Banks Raised On Higher Government Support; Outlook Stable

We now assess Indonesia's three largest state-owned banks--Bank Mandiri (Persero) PT, Bank Rakyat Indonesia (Persero) Tbk. PT, and Bank Negara Indonesia (Persero) Tbk. PT--as having a higher likelihood of extraordinary government support. This is due to their very important role in supporting Indonesia's economic growth via financial intermediation and deeper inclusion. We raised our long-term issuer credit ratings on Mandiri, Rakyat, and Bank Negara Indonesia to 'BBB' from 'BBB-', and our short-term issuer credit ratings to 'A-2' from 'A-3' respectively. This reflects the very high likelihood of extraordinary government support. The stable outlook on the long-term ratings reflects our expectation of government support and that the banks will maintain their financial profiles on the back of their strong market positions

...January 18, 2024 - We now assess Indonesia's three largest state-owned banks--Bank Mandiri (Persero) PT, Bank Rakyat Indonesia (Persero) Tbk. PT, and Bank Negara Indonesia (Persero) Tbk. PT--as having a higher likelihood of extraordinary government support. This is due to their very important role in supporting Indonesia's economic growth via financial intermediation and deeper inclusion. - We raised our long-term issuer credit ratings on Mandiri, Rakyat, and Bank Negara Indonesia to '###' from '###-', and our short-term issuer credit ratings to 'A-2' from 'A-3' respectively. This reflects the very high likelihood of extraordinary government support. - The stable outlook on the long-term ratings reflects our expectation of government support and that the banks will maintain their financial profiles on the back of their strong market positions and capital buffers. SINGAPORE (S&P Global Ratings) Jan. 18, 2024--S&P Global Ratings today raised its long-term issuer credit ratings on Mandiri,...

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