Fitch boosts Bank Lippo

Fitch Ratings said it upgraded PT Bank Lippo Tbk's support rating to 4 from 5 to reflect the entry of Khazanah Nasional Bhd, the investment arm of the Malaysian government, as the majority shareholder of the bank.

The agency added Bank Lippo's individual rating is affirmed at D.

Fitch said Khazanah became a majority shareholder of Bank Lippo in October following the purchase of a 52% stake from the Swissasia Global group and Khazanah now holds an 87.5% interest in Lippo.

Khazanah should be willing and able to support Lippo if necessary, although any support could be limited by the potential for transfer risk in Indonesia, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.