Fitch rates Bank Rakyat bond AA(idn)

Fitch Ratings said it assigned a final rating of AA(idn) to PT Bank Rakyat Indonesia (Persero) Tbk's Rp. 2 trillion five-year subordinated bond II/2009, following the receipt of final documents

Based on some changes in the documents required by law, Fitch said these instruments are now more hybrid-like in nature and are thus subject to greater notching under its hybrid security rating criteria.

Cumulative coupon deferral is considered a form of going concern loss absorption, which the agency said it reflected in at least a two-notch differential between the hybrid security rating and the issuing bank's national unsupported issuer default rating.

In this case, the bank's AAA(idn) national long-term issuer default rating is based on an individual rating of C/D, which leads to a final rating for the issue of AA(idn), Fitch said.

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