Fitch rates Bank Lampung bond A(idn)

Fitch Ratings said it assigned a national long-term rating of A(idn) to PT Bank Pembangunan Daerah Lampung (Bank Lampung) and its proposed bond of up to Rp 500 billion.

The outlook is stable.

The ratings reflect a high probability of support from the regional government of Lampung, given its majority ownership of Bank Lampung, Fitch said.

This is in addition to potential, but limited support from the central government, the agency said.

Downward rating pressure may arise from a sovereign rating downgrade or weakening in the government's propensity to provide financial support to regional development banks, Fitch said, but that is a remote prospect.

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