Fitch lifts Indonesian banks

Fitch Ratings said it upgraded the long-term issuer default ratings of eight Indonesian banks following the upgrade of Indonesia's sovereign ratings.

The agency upgraded PT Bank Mandiri (Persero) Tbk.'s long-term local- and foreign-currency issuer default ratings to BBB- from BB+ and short-term foreign-currency issuer default rating to F3 from B. Its C/D individual rating and AAA(idn) national long-term rating were affirmed.

Fitch upgraded PT Bank Rakyat Indonesia (Persero) Tbk.'s long-term foreign-currency issuer default rating to BBB- from BB+ and short-term foreign-currency issuer default rating to F3 from B. Its C/D individual rating, AAA(idn) national long-term rating and AA(idn) rupiah subordinated debt rating were affirmed.

The agency upgraded PT Bank Central Asia Tbk.'s long-term foreign-currency issuer default rating to BBB- from BB+, short-term foreign-currency issuer default rating to F3 from B and individual rating to C from C/D. Its AAA(idn) national long-term rating was affirmed.

Fitch upgraded PT Bank Negara Indonesia (Persero) Tbk.'s long-term local- and foreign-currency issuer default ratings to BBB- from BB+ and short-term foreign-currency issuer default rating to F3 from B. Its C/D individual rating and AA+(idn) national long-term rating were affirmed.

The agency upgraded Lembaga Pembiayaan Export-Import Indonesia's long-term foreign-currency issuer default rating to BBB- from BB+.

Fitch upgraded PT Bank Internasional Indonesia Tbk.'s long-term foreign-currency issuer default rating to BBB from BB+ and short-term foreign-currency issuer default rating to F3 from B and affirmed its individual rating at C/D, national long-term rating AAA(idn), rupiah senior debt rating at AAA(idn) and rupiah subordinated debt rating at AA(idn).

The agency upgraded PT Bank CIMB Niaga Tbk.'s long-term foreign-currency issuer default rating to BBB from BB+ and affirmed its individual rating at C/D, national long-term rating at AAA(idn) and rupiah subordinated debt rating at AA(idn).

Finally, Fitch upgraded PT Bank OCBC NISP Tbk.'s long-term foreign- and local-currency issuer default ratings to BBB from BB+ and short-term foreign-currency issuer default rating to F3 from B as well as affirmed its individual rating at C/D, national long-term rating at AAA(idn) and rupiah subordinated debt rating at AA(idn).

The outlook for each bank is stable.

The upgrade of the three state-owned banks, Mandiri, Rakyat Indonesia and Negara Indonesia, and the government-owned policy bank, Indoexim, reflect Fitch's view of a higher probability of state support in times of need due to the government's improving credit profile and the banks' continued systemic importance to the domestic economy, the agency said.

The issuer default ratings of CIMB Niaga, NISP and Bank Internasional Indonesia were upgraded to the BBB, the same level as Indonesia's country ceiling. This reflect Fitch's expectation of strong support from their foreign parent banks, especially now that Indonesia's sovereign ratings are in the investment-grade category.

The agency said the upgrade of Bank Central Asia stems from its demonstrated track record and stronger credit standing, relative to rated domestic peers, through the economic cycles.

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