S&P rates Bank Rakyat BB+

Standard & Poor's said it assigned a BB+ long-term and B short-term issuer credit ratings to PT Bank Rakyat Indonesia (Pereso) Tbk.

The outlook is stable.

The agency also said it assigned axBBB+ long-term and axA-2 short-term Asean regional scale issuer credit ratings to the bank.

The ratings reflect the bank's strong business position, adequate capital and earnings, moderate risk position, above-average funding and strong liquidity, S&P said.

The agency added that it views Indonesia as a low-income economy with development constrained by infrastructure shortfalls, legal uncertainties, corruption and labor market rigidities.

The banking industry in Indonesia operates within a weak institutional framework with a weak regulatory track record, S&P said, but a strong customer deposit base supports the banking industry.

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