Fitch affirms Bank Tabungan

Fitch Ratings said it affirmed PT Bank Tabungan Negara's national long-term rating at AA-(idn).

The outlook is stable.

The ratings reflect its dominant role in the provision of subsidized financing for low-cost housing, but also take into account its limited deposit franchise and below average profitability, Fitch said.

Although non-performing loans have deteriorated, its capital position is expected to provide some cushion while the impact on credit costs should be alleviated by the security provided by its largely residential property-backed mortgage portfolio, the agency said.

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