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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Bank Mandiri (P.T.)
Global Credit Research - 29 Aug 2020
Singapore, August 29, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Bank Mandiri (P.T.) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
Bank Mandiri's (P.T.)'s (Mandiri) long-term deposit ratings of Baa2 are one notch higher the bank's Baseline Credit Assessment (BCA) of baa3, reflecting Moody's assumption of a very high probability of support from the Government of Indonesia (Baa2) in times of need. The support assumption is predicated on Mandiri's systemic importance to Indonesia's financial system as one of the largest banks by deposits, as well as the government's majority ownership of the bank.
Mandiri's BCA of baa3 reflects the bank's strong funding and liquidity, underpinned by an extensive distribution network in Indonesia. Mandiri's capitalization is also strong, reflecting the bank's prudency in capital management. The BCA also factors in asset risks associated with Mandiri's commercial and small and mid-sized enterprise segments, which will be vulnerable to economic downturns.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Banks Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Tengfu Li Analyst Financial Institutions Group Moody's Investors Service Singapore Pte. Ltd. 50 Raffles Place #23-06 Singapore Land Tower Singapore 48623 Singapore JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077 Graeme Knowd MD - Banking Financial Institutions Group JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077 Releasing Office: Moody's Investors Service Singapore Pte. Ltd. 50 Raffles Place #23-06 Singapore Land Tower Singapore 48623 Singapore JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077
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