Eximbank on Positive Outlook; PPRO Outlook Revised to Negative
Fitch Ratings has revised the outlook on Indonesia Eximbank to Positive from Stable. At the same time, Fitch did not raise outlook on other 3 SOE banks Bank Rakyat Indonesia, Tbk (BBRI:IJ), Bank Mandiri, Tbk (BMRI:IJ), and Bank Negara Indonesia, Tbk (BBNI:IJ) but affirming them at stable outlook in view that the government’s support on those banks as somewhat less than that for Eximbank. The long term foreign currency rating for all those 4 SOEs were affirmed at BBB- while the long term national rating also unchanged at AAA(idn) except for BNI at AA+(idn). Elsewhere, Pemeringkat Efek Indonesia (Pefindo) lowered the outlook on PP Properti, Tbk (PPRO:IJ) to negative from stable with rating affirmed at idA-. The outlook revision was triggered by a weakening capital structure and cash flow protection as Pefindo believes that PPRO’s debt/EBITDA ratio might increase due to lower profitability margin and higher debt to finance land acquisition and lengthened collection period.
