Moody's affirms Bank Niaga, Bank Lippo

Moody's Investors Service said it affirmed all the ratings of Bank Niaga and Bank Lippo.

The actions follow the release of detailed merger plans by the banks' common major shareholder. Both banks have exactly the same bank financial strength and credit ratings.

The outlook is stable.

The affirmation reflect Moody's view that the banks' financial risk profile will be unaffected by the transaction.

The impact of the transaction will likely only result in positive synergies in the long-term, Moody's said. After the merger, the bank will be the fifth largest in Indonesia in terms of assets, the agency said, and will enjoy stronger economies of scale.

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