PT Bank Rakyat Indonesia Persero Tbk : BBRI Newsletter - Fitch Rating Upgrade
February 02, 2023 at 08:21 am EST
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I N V E S TO R N E W S L E T T E R
February 2023
Fitch Upgrades BRI rating to 'BBB' and 'AAA(idn)' with stable outlook
On February 1st 2023, Fitch ratings has upgraded PT Bank Rakyat Indonesia (Persero) Tbk's (BRI) Long-Term Issuer Default Rating (IDR) to 'BBB' from 'BBB-' and BRI's National Long-Term Rating to 'AAA(idn)' from 'AA+(idn)' with a stable outlook. In addition, Fitch has upgraded the bank's US dollar-denominated senior unsecured notes to 'BBB' from 'BBB-'.
Key rating drivers:
Government support considering BRI's systemic importance as one of the largest commercial banks in Indonesia, strategic state ownership & BRI's role in supporting the MSME segment
Stable operating environment outlook as GDP growth is likely to be resilient in 2023 and 2024, which should support the industry's loan demand and asset quality
Strong Indonesian franchise, as signified by its market-leadingoperating income and very high market share in its core operating segment of MSME lending. This is complemented by adequate diversification and management quality that is comparable with most of its large bank peers
Improving asset-quality metrics as Fitch expects
BRI's NPL's to improve gradually
Sustained profitability recovery from high loan growth and lower credit costs given Fitch's expectations for asset quality improvement and adequate loan loss coverage. Fitch expects that the pressure on BRI's net interest margin from rising rates to be partially offset by increasing lending yields due to continued expansion into micro lending
Satisfactory capital buffers, the consolidated tier-1ratio of 25.1% provides the bank with a satisfactory buffer against potential asset-qualitydeterioration
Stable funding profile, as Fitch expects BRI to maintain satisfactory liquidity at reasonable costs to support the group's operations
For the complete report, please follow the link below: https://www.fitchratings.com/research/banks/fitch-upgrades-bank-rakyat-indonesia-to-bbb-aaa-idn-outlook-stable-01-02-2023
PT BANK RAKYAT INDONESIA (Persero) Tbk.
Investor Relations
Phone
: 62 21 5752006/09
7th floor BRI II Building
Website
: www.ir-bri.com
Jl. Jenderal Sudirman Kav 44-46 Jakarta 10210, Indonesia
Email
: ir@bri.co.id
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BRI - PT Bank Rakyat Indonesia (Persero) Tbk published this content on 02 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2023 13:20:02 UTC.
PT Bank Rakyat Indonesia (Persero) Tbk is an Indonesia-based banking company. The Company focuses on micro, small and medium enterprises (MSME) and microfinance in Indonesia. Its savings products include Simpedes, BritAma, BritAma Bisnis, BritAma X, Simpedes TKI, Hajj Pilgrimage Savings Account, BritAma Rencana, BritAma Valas, Junio, Tabungan BRI Simpel and TabunganKu. The Companyâs time deposits include Rupiah Time Deposit, Foreign Currency Time Deposit and Internet Banking Deposit. Its current account includes BRI Rupiah Giro and BRI Foreign Currency Giro. Its corporate business banking services include business services, financial services, institutional services, treasury, custodian services, trustee services and cash management services. The Company operates approximately 18 regional offices, approximately 459 branches and over 579 sub-branches. The Company offers services in Borneo, Sulawesi, Maluku, Papua, Nusa Tenggara, Java, and Sumatra.