Bank BJB’s Outlook Revised to Stable; MNC Investama Downgraded to B/Negative

Pemeringkat Efek Indonesia (Pefindo) has affirmed PT Bank Pembangunan Daerah Jawa Barat & Banten Tbk or Bank BJB (BJBR:IJ) ratings at ‘idAA-‘ with its outlook was revised to stable from negative. The similar rating also affirmed for its outstanding bond VII/2011. The outlook upgrade is driven by the sustainable recovery in Bank BJB’s asset quality. Bank BJB could gradually improve its NPL ratio to 3.8% (as of 30 Sept 2015) from 4.3% last year.

Primary Activity Boosted by Multifinance Bonds Offer

New Bond Issues From Mayora and Eximbank

New Bonds and Sukuk Offering by Medco Energi and Bank Syariah Mandiri

Muted Reaction on Outlook Upgrade by Fitch

Domestic Economic Data Encouraged the Rupiah Strengthening This Week

Pefindo views Bank BJB’s overall asset quality will continue to be in line with industry average in the medium term and management strategy to focus on low-risk portfolio such as consumer and selected productive loan segments. Meanwhile, S&P downgraded MNC Investama, Tbk (BHIT:IJ) to B/negative from B+/negative, driven by sizeable debt maturities profile in 2 – 3 years at its main operating subsidiaries and persistent thin interest coverage ratio.

Indonesia Two Banks Outlook Downgraded on Weakening Asset Quality

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Bank Indonesia Holds Benchmark Rate, Pushes for Speedy Loan Consolidation