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Friday, July 2, 2010

Fitch Ratings upgraded Bank Panin ratings

Irvin Avriano A.
Bisnis Indonesia

Fitch Ratings upgraded Bank Panin ratings

JAKARTA: PT Fitch Ratings Indonesia upgraded national long-term ratings of PT Bank Pan Indonesia Tbk (Bank Panin) from the level of AA- to AA level and to their corporate bond ratings.

Company's sub-ordinated bond rating has also improved from the level of A+ to AA- level. Rankings were determined with a stable outlook.

Currently, Bank Panin still have the rupiah denominated bonds worth IDR2.4 trillion and IDR1.5 trillion subordinated bond II/2008 series. It consists of conventional bonds worth IDR1.4 trillion II/2007/B series, II/2007/C series worth IDR200 billion and IDR800 billion from III/2009 bonds.

In a press release this afternoon, Fitch also revised the prospects for long-term foreign currency issuer default ratings of the company from stable level to positive levels, with the determination of credit ratings in the same position at the BB level. Individual ratings also reaffirmed at the level of C/D and support rating at level 3.

Improved ratings were based on the company's improving financial profile which strength is reflected in the strong capital position and increase reserve funds of non performing loans (NPL).

Fitch also noted that increasing the core profitability of the company to help minimize credit costs incurred due to a decline in credit quality during 2009.

Revised ratings prospects for long-term foreign-denominated loans to a positive level reflecting the expectation of positive momentum of improving credit profile that predicted will continue to improve in the company in the middle of the operational conditions that are more favorable this year.

Fitch is also concerned about a sustainable improvement in loan quality and profitability despite the strong capital factor.

Fitch will also monitor the quality of restructured loans increased Panin Bank in 2009 when there are happen global economic crisis.

Corporate credit quality declined in 2009 due to operational performance and a difficult industrial climate, which also likely caused by its loans sharp increase in in 2008.

The company has successfully kept the NPL ratio to 3.1% at the end of 2009 from the position amounted to 4.3% in 2008 through a restructured loan increased to around 8% from the previous level of 3.5%.



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