April 9, 2013 / 5:17 AM / 4 years ago

Fitch Rates Indonesia's Bank BTPN'S Bond 'AA-(IDN)'

(The following statement was released by the rating agency) JAKARTA/TAIPEI/SINGAPORE, April 09 (Fitch) Fitch Ratings has assigned PT Bank Tabungan Pensiunan Nasional Tbk's (BTPN) unsecured senior debt programme II of up to IDR4trn a National Long-Term rating of 'AA-(idn)'. BTPN expects to issue bonds under the programme within the next two years. Fitch also has BTPN's proposed issue of up to IDR1trn bonds with maturity of up to five years, under BTPN's bond programme II, a National Long-Term 'AA-(idn)' rating. The proceeds will be used for business expansion. Rating Action Rationale The senior bonds are rated the same level as BTPN's National Long-Term rating and its bond programme's rating of 'AA-(idn)', as they reflect direct, unconditional, unsecured and unsubordinated obligations of the bank. BTPN's ratings reflect its strong capitalisation relative to domestic peers and its sound profitability. Its Tier 1 ratio and its non-performing loans were 20.5% and 0.58% at end-2012, compared with the industry average of 15.6% and 1.9%, respectively. The ratings also take into account the bank's exposure to high-risk micro-financing, particularly in an economic downturn. Rating Drivers and Sensitivities Downward rating pressure may result from significant asset quality deterioration, which Fitch believes is unlikely in the near- to medium-term. Upside potential is limited given its small franchise and its less diversified business profile relative to peers. Established in 1958, BTPN is a medium-sized public bank focused on the pension market. In March 2008, TPG Nusantara S.a.r.l (TPG) acquired a 71.6% stake in BTPN. At end-2012, TPG held 57.9% of the bank's shares and the rest was publicly owned (42.1%). Contact: Primary Analyst Iwan Wisaksana Director +62 21 2902 6407 PT Fitch Ratings Indonesia Level 20 Prudential Tower Jl. Jend. Sudirman Kav.79 Jakarta, Indonesia 12910 Secondary Analyst Stefanus Yuniardhi Assistant Director +62 21 2902 6405 Committee Chairperson Jonathan Lee Senior Director +886 2 8175 7601 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(idn)' for National ratings in Indonesia. Specific letter grades are not therefore internationally comparable. Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. Applicable criteria, "Global Financial Institutions Rating Criteria", dated 15 August 2012, and "National Ratings Criteria", dated 19 January 2011, are available at www.fitchratings.com. Applicable Criteria and Related Research Global Financial Institutions Rating Criteria here National Ratings Criteria here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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