Fitch affirms Bank Mandiri

Fitch Ratings said it has affirmed PT Bank Mandiri (Persero) Tbk's long-term foreign and local currency issuer default ratings at BB with a stable outlook, short-term rating at B, national long-term rating at AA+(idn), individual at C/D, support rating at 3 and support rating floor at BB-.

"The stable outlook on Mandiri's international ratings reflects the resilience of its underlying profitability, despite the challenging operating conditions and its well-reserved NPLs. These should help cushion the bank against the impact of higher credit costs," said Tan Lai Peng, director with the agency's financial institutions group.

The ratings also reflect the bank's position as the largest majority state-owned bank in Indonesia, the agency noted. However, should there be a sharp deterioration in the bank's asset quality such that impairment risk on capital increases, the bank's ratings may come under pressure.

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