JAKARTA. Moody’s has elevated the ratings of PT Bank Danamon Tbk (BDMN) and PT Adira Dinamika Multifinance Tbk (ADMF) to Baa1 from the initial Baa2, with a stable outlook.
Tengfu Li, Moody’s analyst, claimed that the said rating reflects the high possibility of BDMN and ADMF to gain supports from its ultimate shareholders, MUFG Bank Ltd. According to idnfinancials.com, MUFG Bank controls 92.47% of Bank Danamon as of September 30, 2021. Meanwhile, BDMN has control over 92.07% of ADMF’s shares.
In terms of capitalisation, Moody’s projected that BDMN’s capital structure would maintain its solid position for the next 12-18 months. However, the risk towards its assets was still deemed quite high as the credit restructuring increased.
“Moody’s also expected Bank Danamon’s profitability to improve following the decreased provision for credit losses,” Li added in the official release.
On the other hand, the rating upgrade for ADMF was decided due to the solid support of BDMN and MUFG Bank towards its consumer financing business. Through a joint-financing agreement, Li revealed that BDMN has distributed 30% of its total loans through ADMF.
“The rating of Adira Finance is a combination of the solid capital structure and profitability, balanced out with the quality of its assets and a moderate liquidity,” Li elaborated further.
For the record, BDMN reported total assets of IDR 188.28 trillion as of September 30, 2021. Meanwhile, its total equity reached IDR 44.76 trillion. (KR/ZH)