JAKARTA - The impact of the Covid-19 pandemic that began to affect banks forced Fitch Ratings to downgrade PT Bank Central Asia Tbk (BCA) 's Long Term Issuer Default Rating from 'BBB' to 'BBB-'. At the same time, the rating agency also lowered the National Long-Term Rating of BCA and its subsidiary, PT BCA Finance (BCAF) from 'AAA (idn)' to 'AA+ (idn)'. Stable Outlook.
Stable Outlook explains Fitch's confidence in BCA in terms of income, reserves, and adequate capital in order to fight the potential of loss due to the Covid-19 pandemic in a short period of time.
Fitch has also revised the operating environment rating for banks in Indonesia to 'BB+', from 'BBB-', which reflects significant short-term risks to growth, asset quality, and profitability.
According to Raymon Yonarto, Corporate Secretary of BCA, the new rating (BBB-) is still higher than the nationwide rating for banking (BB+). Yonarto continued that BCA will always maintain its liquidity and capital, as well as continue to monitor and evaluate the effects of Covid-19 pandemic towards the corporation's business strategy and financial performance. (ARM/AC/AR)