Fitch: Bank UOB Indonesia bonds AA(idn)

Fitch Ratings Indonesia said it assigned a national long-term rating of AA(idn) to PT Bank UOB Indonesia's (AAA(idn)/stable) proposed issuance of rupiah subordinated bonds of up to Rp 500 billion.

The proposed bonds, to be issued under the second tranche of the bank's program, will have a maturity of up to seven years.

Proceeds will be used to strengthen the company's capital and also to support its business growth.

The proposed subordinated bonds are rated two notches below UOB Indonesia's national long-term rating – one notch for loss severity to reflect their subordination and write-down features, and another notch for non-performance risk to reflect coupon and principal deferral risk, Fitch explained.

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