Fitch affirms three Indonesian banks

Fitch Ratings said it affirmed at AAA(idn) the national long-term ratings and at F1+(idn) the national short-term ratings of three foreign-owned Indonesian banks, including PT Bank Permata Tbk, PT Bank Commonwealth and PT Bank ANZ Indonesia.

The agency said the affirmation is based on a view that the banks' higher-rated parents have high ability and propensity to provide timely support to their subsidiaries, should it be needed.

Fitch said it believes any required extraordinary support would be immaterial relative to the parents' ability to provide it, as each subsidiary accounted for less than 2% of its parent's consolidated assets at the end of the first half of 2018.

The agency said it sees the banks' deposit franchises as weaker than those of larger industry peers due to their smaller networks and less diversified customer bases.

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