Fitch rates Bank Lippo debt B+

Fitch Ratings said it assigned a BB- long-term foreign-currency issuer default rating, B short-term foreign-currency rating and A+(idn) long-term national rating to Indonesia-based PT Bank Lippo Tbk. and an expected B+ long-term rating to the bank's proposed subordinated debt issue due in 2016, which is callable with a step up in 2011.

The bank's D individual rating and 4 support rating were affirmed.

The outlook is stable.

The agency said the ratings reflect the improved profitability and stable balance sheet position of the bank and recognizes the financial strength of its parent Khazanah Nasional Bhd., which is the investment arm of the Malaysian government.

The issue is rated one notch lower than the bank's issuer default rating and will rank pari passu with all existing and future subordinated debt of the bank, junior to claims of all deposit liabilities and other liabilities except for those termed equal or junior to this issue, Fitch said.

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