Moody’s acts on Indonesian financials

Moody's Investors Service said it upgraded the ratings of nine banks and finance companies in Indonesia to Baa2.

The affected banks are Bank Mandiri, Bank Rakyat Indonesia, Bank Central Asia Tbk, Bank Negara Indonesia Tbk, PT Bank CIMB Niaga Tbk, Bank Tabungan Negara and Bank Danamon Indonesia Tbk.

The agency also revised the outlooks to stable from positive.

The affected finance companies are Astra Sedaya Finance and Lembaga Pembiayaan Ekspor Indonesia.

Moody's revised the outlook for Indonesia Eximbank to stable from positive and maintained the stable outlook of Astra Sedaya.

The deposit ratings, baseline credit assessment and adjusted BCA of Bank Permata Tbk were affirmed and the outlook was changed to stable from negative.

Moody's also upgraded Bank Rakyat Indonesia’s and Bank Central Asia’s BCAs and adjusted BCAs to baa2 from baa3. The counterparty risk assessments of Bank Negara, Bank Tabungan Negara and Bank Permata were upgraded to Baa2(cr)/P-2(cr) from Baa3(cr)/P-3(cr).

Bank Rakyat Indonesia’s and Bank Central Asia’s counterparty risk assessments were upgraded to Baa1(cr) from Baa2(cr), while the counterparty risk assessments of Mandiri, CIMB Niaga and Bank Danamon Indonesia were affirmed at Baa2(cr)/P-2(cr).

In addition, the P-3 short-term deposit ratings of Mandiri, Bank Rakyat Indonesia, Bank Central Asia, Bank Negara Indonesia Tbk, CIMB Niaga, Bank Tabungan Negara and Bank Danamon Indonesia were upgraded to P-2.

The P-3 short-term deposit ratings of Bank Permata were affirmed.

The agency said the actions follow the upgrade of Indonesia's sovereign rating to Baa2.

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