Indonesia Two Banks Outlook Downgraded on Weakening Asset Quality

On rating front, Pemeringkat Efek Indonesia (Pefindo) has downgraded the outlook on two domestic banks namely Bank DKI and Bank Muamalat to Negative from stable. The downgrades were driven by the probability of further deterioration of their asset quality due to increasing trend of NPL and SML. Bank DKI’s NPL ratio spiked to 7.3% in 1H15 from 4.4% in FY14. Likewise, Bank Muamalat special mention loan rose 22.7% in 1H 15 from 15.5% at the end of 2014. However the company’s non performing loan improved to 4.9% in 1H15 from 6.5% last year.

Aneka Tambang Rating Downgraded to idBBB+ from idA-

Energi Mega Downgraded to B-/Negative

TBIG’s Rating Downgraded to Ba3 Whilst Parent Rating SRTG Lowered to BBB+

Maintain Rupiah Fundamentally

Fitch Affirms Indonesia Ratings at BBB-/Stable