JAKARTA. Fitch Ratings downgraded its rating for PT Bank Sinarmas Tbk (BSIM) from "A (idn) to "A- (idn)" with a negative outlook, because its Non Performing Loans (NPLs) increased in the first semester (1H) of 2019.
Iwan Wisaksana, analyst at Fitch Ratings, said that BSIM's NPL in 1H 2019 was at the level of 8.8%. "The NPL ratio is much higher than the industry average of 2.5%," Wisaksana said through an official statement.
In addition, BSIM 's credit profile is also considered weaker. The loan portfolio of the company is also considered high risk. Indirectly, a number of these factors are considered to hamper the profitability of BSIM.
In August 2019, BSIM had just received a capital injection from PT Sinar Mas Multiartha Tbk (SMMA) worth Rp 1 trillion. (KR/AR)