Fitch upgrades Indonesian banks

Fitch Ratings said it upgraded the long-term foreign-currency issuer default ratings of 11 Indonesian banks to BB from BB-, as well as the long-term local-currency issuer default ratings to BB from BB- of PT Bank Mandiri (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk, PT Bank NISP Tbk and PT Bank UOB Buana Tbk. The individual ratings, short-term issuer default ratings and national ratings have been affirmed.

The outlook has been revised to stable from positive.

This follows a similar upgrade on the long-term issuer default rating of the Indonesian sovereign. The upgrades also reflect the banks' financial improvement in the past year, Fitch said, and a belief that operating conditions in Indonesia should remain generally supportive of credit quality going forward.

The banks affected include:

Bank Mandiri's long-term foreign- and local-currency ratings were upgraded to BB from BB- with stable outlook, support rating upgraded to 3 from 4, support rating floor upgraded to BB- from B+, individual rating affirmed at C/D, short-term issuer default rating affirmed at B and national long-term rating at AA+(idn), foreign-currency senior and subordinated debt ratings upgraded to BB and BB-, respectively.

Bank Central Asia's long-term foreign-currency issuer default rating was upgraded to BB from BB- with stable outlook, support rating upgraded to 3 from 4, support rating floor upgraded to BB- from B+, individual rating affirmed at C/D, short-term issuer default rating affirmed at B, national long-term rating affirmed at AA+ (idn).

Bank Rakyat Indonesia's long-term foreign-currency issuer default rating was upgraded to BB from BB-with stable outlook, support rating upgraded to 3 from 4, support rating floor upgraded to BB- from B+, individual rating affirmed at C/D, short-term issuer default rating affirmed at B, national long-term rating affirmed at AAA (idn).

Bank Negara Indonesia's long-term foreign- and local-currency issuer default ratings upgraded to BB from BB- with stable outlook, support rating upgraded to 3 from 4, support rating floor upgraded to BB- from B+, individual rating affirmed at D; short-term issuer default rating affirmed at B; national long-term rating affirmed at AA-(idn), foreign-currency subordinated debt upgraded to BB- from B+.

Bank Danamon's long-term foreign-currency issuer default rating upgraded to BB from BB- with stable outlook, support rating upgraded to 3 from 4, support rating floor upgraded to BB- from B, individual rating affirmed at C/D, short-term issuer default rating affirmed at B, national long-term rating affirmed at AA(idn).

Bank Internasional Indonesia's long-term foreign-currency issuer default rating upgraded to BB from BB-with stable outlook, support rating upgraded to 3 from 4, individual rating affirmed at C/D, short-term issuer default rating affirmed at B; national long-term rating affirmed at AA-(idn), foreign-currency subordinated debt rating upgraded to BB- from B+.

Bank Niaga's long-term foreign-currency issuer default rating upgraded to BB from BB- with stable outlook, support rating upgraded to 3 from 4, individual rating affirmed at C/D, foreign-currency subordinated debt rating upgraded to BB- from B+.

Bank Lippo's long-term foreign-currency issuer default rating upgraded to BB from BB- with stable outlook, support rating upgraded to 3 from 4, individual rating affirmed at C/D, short-term issuer default rating affirmed at B, national long-term rating affirmed at AA-(idn). foreign-currency subordinated debt upgraded to BB- from B+.

Bank Pan Indonesia's long-term foreign-currency issuer default rating upgraded to BB from BB- with stable outlook, support rating upgraded to 3 from 4, individual rating affirmed at C/D, national long-term rating affirmed at AA-(idn), foreign-currency subordinated expected debt rating upgraded to BB- from B+.

PT Bank NISP Tbk's long-term foreign- and local-currency issuer default rating upgraded to BB from BB- with stable outlook, individual rating affirmed at C/D, support rating affirmed at 3, national long-term rating affirmed at AA+(idn), short-term issuer default rating affirmed at B, foreign-currency subordinated debt upgraded to BB- from B+.

PT Bank UOB Buana Tbk's long-term foreign- and local-currency issuer default ratings upgraded to BB from BB- with stable outlook, individual rating affirmed at C/D, support rating affirmed at 3, national long-term rating affirmed at AA+(idn), short-term issuer default rating affirmed at B.

PT Bank Tabungan Negara (Persero)'s support rating upgraded to 3 from 4, individual rating affirmed at D, national long-term rating affirmed at AA-(idn).

PT Bank Mega Tbk's support rating affirmed at 4, individual rating affirmed at D; national long-term rating affirmed at A+(idn).

PT Bank Permata Tbk's support rating upgraded to 3 from 4, individual rating affirmed at C/D.

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