JAKARTA. Moody's Investors Services, a rating agency, confirmed the Baa3 rating for local deposits and long-term foreign currencies of PT Bank Permata Tbk, which reflects a stable outlook.
The rating is supported by the improvement in Bank Permata's credit profile and also the improvement in the quality of its assets.
The rating does not include support from affiliates. Standard Chartered Bank plans to release its shares in Bank Permata. The support of other major shareholders, PT Astra International Tbk was also not included because of the uncertainty of the conglomerate company to remain in the bank.
The quality of Bank Permata's assets has improved since 2017, following a series of non-performing loans (NPLs), elimination of loans and active restructuring of depressed accounts.
Moody's estimates that the coverage ratio of Bank Permata as of the end of 2018 also rose by 176%. This rating agency projects the quality of bank assets to increase further over the next 12 to 18 months, supported by stable operations.
The rating can change again if the quality of Bank Permata assets deteriorates, or if the shares of Bank Permata are acquired by stronger domestic or international banks, which can encourage increased affiliate support. (AM/AR)