Fitch: Bank Buana support on positive watch

Fitch Ratings said it placed PT Bank Buana Indonesia Tbk's (Buana) support rating of 5 on rating Watch positive, pending the completion of United Overseas Bank Ltd.'s (UOB) acquisition of a majority stake in the bank.

Fitch noted this is expected to strengthen UOB's commitment and support for Buana as a going concern, adding Buana's other ratings are affirmed as follows: long term foreign currency and local currency at BB-, short-term foreign currency at B, national long-term at A-(idn) and individual at C/D.

The outlook is positive.

Fitch said it believes that UOB holding a majority stake bodes well for Buana's future operational development particularly in the light of growing competition from other larger and foreign-owned peers in the Indonesian banking industry.

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