Fitch affirms Bank Panin

Fitch Ratings said it affirmed PT Bank Pan Indonesia Tbk.'s (Bank Panin) long-term foreign-currency issuer default rating at BB with a stable outlook, viability rating at bb and support rating at 3.

The agency also affirmed and withdrew the bank's AA(idn) national long-term rating, AA(idn) senior debt rating and A(idn) subordinated debt rating. These ratings are no longer considered by Fitch to be relevant to its coverage.

Fitch said Bank Panin's ratings reflect its low, albeit improving, provision cover relative to many higher-rated Indonesian banks, its rapid loan growth and its high but improving non-performing loan ratio, which at 3.5% is still above the banking industry average of 2.2%.

The ratings also reflect the bank's sound capital position, stronger profitability and higher asset quality, which, in Fitch's opinion, should continue to adequately buffer unexpected credit losses. Fitch said the ratings further reflect its expectation of modest support from Australia and New Zealand Banking Group given its non-controlling, albeit substantial, 38% interest in the bank.

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