April 9, 2013 / 7:28 AM / 4 years ago

RPT-Fitch Affirms Indonesia Exim at 'BBB-' / Stable

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April 9 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has affirmedInternational Traveller Pangjang Term Issuer Default Rating (IDR) InstituteExport Finance Indonesia (Indonesia Exim) at 'BBB-' with a Stable Outlook.A complete list of rankings are at the end of this report.

consideration The ranking

Indonesia ranks Exim line with Indonesia's sovereign ratings,which reflects Fitch's expectation for the high probability of support fromgovernment (BBB-/Stable) when needed. This support is based on the roleIndonesia is important as an institution Exim policy (policy institution) tosupport the export of Indonesia, 100% owned by the state and controlled byMinistry of Finance (MOF).

Established under Republic ActIndonesia No. 2/2009, Indonesia Exim can only be liquidated bySpecial Act. Viability Rating not set up to Indonesia Eximbecause it is difficult to assess the type of institution policies independently.The Government is committed to maintain minimum levels of capital in Indonesia Exim 4trillion dollars and distribute 10% of the surplus for dividends andpewagai compensation, as determined in a special law 2/2009 tosupport its role as a policy institution. Government support has beenstrengthened through the establishment of financing facilities of MOF in 2011 thecan be withdrawn when needed.

Factors Fueling Rating

Increased stages of achieving sovereign Indonesia might able to cause changeswhich same with stage Indonesia Exim when relationship and DPD who strongfrom ruler Indonesia not changed. The stage pressure can arise froma decrease in ranking achieving sovereign or from a decrease possibility DPDruler, despite Fitch it estimates its prospects small in the long-timenear reach secondary.

Indonesia Exim euro medium term notes (EMTN) rated at the same levelrated INR Indonesia Exim because it reflects senior obligations,unconditional, unsecured company. Changes in S Indonesia Exim willcause similar changes in EMTN ranking.

Indonesia Exim financial performance remains satisfactory, with profitabilityadequate, improved asset quality, strong capitalization. debtNPLs fell to 4.1% by the end of September of 2012 (9M12), buthigher than commercial banks in Indonesia withaverage NPL ratio of 1.9% at year end 2012. policy functionIndonesia Indonesia Exim to support export led credit qualityvulnerable to changes in the global economy. Maintaining a strong core capitalabove 20% (end-9M12: 25.8%) is important to remember that the level of NPL ratiois above average. Fitch notes facilities and funding from MOFstatus as a quasi-sovereign enhance funding flexibility IndonesiaExim and mitigate financial risk during volatile market conditions.

Details of the rating actions are as follows:

- Long-term IDR: affirmed at 'BBB-'; Outlook Stable

- Ranking support lower limits: affirmed at 'BBB-'

- Support Rating: affirmed at '2 '

- USD1.5bn euro medium term note program: affirmed at 'BBB-'

- USD500m euro medium term notes under the EMTN program: affirmed at 'BBB-'

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