JAKARTA. The Indonesian Rating Agency (Pefindo) has affirmed the "idA-" rating that has been given to PT Bank Bukopin Tbk (BBKP) with the CreditWatch rating of 'Developing', after considering the bank's financial and business profile.
Kreshna D Armand and Danan Dito, Pefindo analysts, said that in the second half of this year, there is a possibility for a change in the controlling shareholder of BBKB, from PT Boswa Corporindo to KB Kookmin Bank. According to Pefindo, this change in controlling shareholders "could have a positive effect on the valuation of parent support."
Pefindo considers BBKP's liquidity to be tight, following an increase in the special mention credit ratio to 18.2% and non-performing loans (NPL) ratio to 5.4% at the end of March 2020. BBKP is said to have made a number of efforts to maintain the quality of its assets, from credit securitization to tightening the fund withdrawal policy.
"However, we see that these efforts alone are not enough to totally overcome the pressures in the near to medium term," Armand and Dito explained.
Pefindo added, BBKP's rating could still be revised after its rights issue. Because in this rights issue, KB Kookmin Bank has the potential to become a controlling shareholder, and express how much support it has for BBKP. (KR/AR)