Fitch Ratings upgrades Bank Bukopin rating to AA- prior to rights issue
JAKARTA - Fitch Ratings Indonesia has upgraded PT Bank Bukopin Tbk's (BBKP) long-term national rating to AA-(idn) with a Positive Rating Watch outlook.
The rating falls under the Investment Grade category, which reflects the company's adequate ability to repay its debts. According to Bank Bukopin CEO Rivan Purwantono, the rating increase will trigger the company to improve its performance.
In addition, he also said the rating increase reflects significant support from South Korean company KB Kookmin Bank, which currently owns a 33.9% stake in Bank Bukopin.
"This rapid rating upgrade by Fitch Ratings is a positive step that will serve as a catalyst for us to improve our performance, not only to maintain the positive rating but also to provide optimal additional values for our shareholders and stakeholders," Mr Purwantono said as quoted from CNN Indonesia, Monday (10/8).
Since its 5th Limited Public Offering in July, Bank Bukopin's shareholder composition consists of Kookmin Bank (33.9%); PT Bosowa Corporindo (23.4%); the government (6.37%); and public investors with ownership below 5%, including the Indonesian Bulog Employee Cooperatives or Kopelindo (36.3%).
In August 25, Bank Bukopin is scheduled to hold an EGM to seek shareholder approval prior to launching a rights issue, which will see Kookmin Bank become the company's majority shareholder. (MS)