INDONESIA - RATINGS - Fitch confirms ratings of Bank Muamalat A

www.kontan.co.id - JAKARTA. Fitch Ratings affirmed the National Long-Term ratings of PT Bank Muamalat Indonesia Tbk at level A with a stable outlook and ratings at BBB Muamalat subordinated bonds.
The ranking reflects Fitch's view of the limited opportunities of government support, providing Muamalat symbolic role in the development of Islamic banking in Indonesia. It also highlights assets that are small compared Muamalat domestic banking sector.
Fitch assess the weakness of government support for the bank could have a negative effect for rating Muamalat. Meanwhile, for the ranking of subordinated bonds, according to Fitch that could trigger a decline in lending was aggressive. Especially when affecting the asset quality deterioration and weakening of the capital. (source)

INDONESIA - RATNGS - Fitch rates Bank Mualat A (idn)

www.investor.co.id - JAKARTA - Rating agency Fitch Ratings assign ratings (rating) Long-term Indonesia Tbk, PT Bank Muamalat at level A (idn) with a stable outlook, as well as subordinate debt rating at BBB level (idn).
Fitch assessed, the possibility is supported by the State Bank Muamalat is very small, because the bank already has a symbolic role in the development of Islamic banking in Indonesia. On the other hand, Fitch recognizes Muamalat assets is still relatively small compared to the domestic banking sector.
Until late last year, Bank Muamalat has 25 percent share of the total assets of Islamic banking. However, when compared to the total domestic industry (including conventional bank assets), only 1.1 percent. (source)

WORLD - RATNGS - Fitch affirms Islamic Development Bank

www.reuters.com - Fitch Ratings has affirmed the Islamic Development Bank's (IsDB) Long-term Issuer Default Rating (IDR) at 'AAA' with a Stable Outlook and Short-term IDR at 'F1+'. IsDB's ratings are underpinned by strong intrinsic features, primarily by excellent capitalisation. IsDB is one of the most highly capitalised multilateral development banks (MDBs) covered by Fitch. The ratio of equity to assets has remained above 60% since inception (64.1% at end-1432H, equivalent to 25 November 2011 in the Gregorian calendar), mainly thanks to regular capital inflows from shareholders and steady yet moderate profits. The ratio of debt to equity is low, at 49.2% at end-1432H. The bank also maintains a comfortable level of liquid assets, which more than fully covered its short-term liabilities at end-1432H. Credit risk is moderate. The IsDB mainly extends project financing guaranteed by member states or state-owned banks to finance infrastructure or social services. (source)

INDONESIA - CAPITAL MARKETS - Indonesia to sell US$106.4-M Islamic Bond

www.livetradingnews.com -Indonesia is scheduled to sell sovereign Islamic bond on 26 June at indicative value of 1-T Rupiah (about US$106.4-M), aiming at financing the state budget this year, a statement released by the financial ministry said Wednesday.
The sale of the Islamic bond would be conducted through auction basis, to sell 4 series of the bond, maturing from Y’s 2018 to 2037 and providing rate of returns between 4.45 to 6.10%.
In its revised budget this year, Indonesian government has proposed to raise net bond sales by 25-T Rupiah to 159.6-T Rupiah this year due to widening budget deficit.  (source)

INDONESIA - BANKING - Fitch: Indonesia Foreign Bank Ownership Double-Edged Sword

www.theindonesiatoday.com - Fresh banking capital will be needed to support the ongoing growth of the Indonesian economy, Fitch Ratings says. 
The challenge in broad terms for the local regulator is to oversee the management of the financial system's risks in such a way that it is able to attract new capital to support this growth, while ensuring the accumulation of risk does not ultimately undermine the stability of the overall financial system.
The debate around Indonesian ownership rules is receiving increased attention due to the offer by SINGAPORE's DBS to acquire Bank Danamon. The regulator is widely expected to clarify its position soon. (source)

INDONESIA - INVESTMENT - Indonesian Corruption Is Hurting Foreign Investment: Standard & Poor’s

www.thejakartaglobe.com - Standard & Poor’s rating agency, the lone holdout among its peers in keeping Indonesia’s sovereign debt rating one notch below investment grade, says corruption is choking off foreign direct investment.

In a report on Thursday — titled “Indonesia’s Foreign Direct Investments Surge Despite Some Less Alluring Factors” — analysts Agost Benard and John Chambers said bureaucracy, corruption, legal uncertainty, infrastructure deficiencies and inflexible labor markets had long hampered foreign investment in Indonesia.

Benard said Indonesia’s large domestic market and rising income per capita makes the country a compelling investment destination for consumer goods manufacturers, “especially when viewed against the anemic growth outlook and saturated consumer markets of the EU and US.”  (source)

INDONESIA - RATNGS - Fitch rates Indosat BBB and the upcoming Indosat Sukuk Ijara AAA (Ind)

www.reuters.com - (The following was released by the rating agency) JAKARTA/SINGAPORE/SYDNEY, April 30 (Fitch) Fitch Ratings has upgraded Indonesia-based P.T. Indosat Tbk's (Indosat) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to 'BBB' from 'BBB-'. The Outlook is Stable.
Its foreign currency senior unsecured rating has also been upgraded to 'BBB' from 'BBB-'. At the same time, the agency has assigned Indosat a National Long-Term Rating of 'AAA(idn)' and 'AAA(idn)' ratings to its proposed bond and sukuk ijarah with maximum issuance of IDR2.5trn and IDR500bn respectively.  (source)

INDONESIA - RATNGS - Pefindo : Bank Nagari

www.pefindo.com - PEFINDO affirmed its “idA” rating of PT Bank Pembangunan Daerah Sumatera Barat or Bank Nagari (BPSB or the Bank) as well as the rating of its outstanding Bond VI/2010 of IDR500 billion. At the same time, PEFINDO also affirmed its “idA(sy)” rating of the Bank’s Sukuk Mudharabah I/2010 of IDR100 billion and its “idA-” rating of the Bank’s outstanding subordinated Debt I/2010 of IDR 81 billion. Outlook for the corporate rating is “stable”. The ratings reflect strong and proven support from the Bank’s shareholders, its strong market position in the region, and relatively strong profitability. However, the ratings are constrained by the Bank’s relatively high non-performing loans, below average liquidity indicators, and intensifying competition in the region. (source)

INDONESIA - RATINGS - Fitch Assigns Positive Outlook to Indonesia’s BB+ Ratings (Feb 2011)

www.bi.go.id - Fitch Ratings has today (February 24, 2011) affirmed Indonesia’s long-term foreign and local currency issuer default ratings (IDRs) at ‘BB+’ and revised the outlooks on both to Positive from Stable.

The Governor of Bank Indonesia, Darmin Nasution said that the establishment of a positive outlook on the Republic’s sovereign credit rating in the midst of inflationary pressure risks and current economic challenges, reflects international confidence in the credibility of economic authority in managing the economy of Indonesia. Indonesia is only one step away toward the investment grade category. Indonesia has been proven to remain strong during the difficult times and supported by sound macroeconomic fundamentals as well as increasing level of investment to support further growth so that Indonesia will be able to catch up the gap to immediately enter the investment grade sovereign rating category.  (source)

INDONESIA - RATINGS - Fitch Rating Upgraded Indonesia to Investment Grade (Dec 2011)

www.bi.go.id - Today, December 15, 2011 Fitch Ratings the official rating agency of the Republic of Indonesia, upgraded Indonesia's sovereign credit rating, to BBB- level for foreign currency long-term senior debt, with stable outlook.


Philip McNicholas, Director in Fitch Asia-Pacific Sovereign Ratings group mention in the press release, rationale behind the upgrade is Improved economic performance, strenghtened external liquidity, low and declining public debt ratios, and a prudent overall macro policy framework.  (source)

INDONESIA - RATINGS - Officials Say Fitch Upgrade Will Boost Investment Here

Indonesia expects cheaper financing costs when it sells dollar-denominated conventional bonds and global Islamic bonds next year after a rating agency raised the country’s sovereign debt rating to investment grade.

“Definitely we expect a better price,” said Rahmat Waluyanto, director general of the debt management office at the Finance Ministry in Jakarta.  (source)

INDONESIA - RATINGS - Rupiah, Bonds Gain as Fitch Upgrades Rating to Investment Grade

Dec. 16 (Bloomberg) -- Indonesia’s rupiah had its first weekly gain since October after Fitch Ratings upgraded the country to investment grade, fueling optimism foreign funds will add to their holdings of the nation’s debt. Bonds advanced.  (source)

INDONESIA - RATINGS - Translate from: English ITS II achieve rated BB + (exp) from Fitch

JAKARTA: Fitch Ratings assign ratings SBSN Publishing Company PT Indonesia II (ITS II) and the global sukuk to be issued at the level of BB + (exp).

The Fitch ratings research today shows that rank equivalent to a rank long-term government debt and foreign denominated global bonds already issued. (source)

INDONESIA - RATINGS - Fitch Rates Indonesia's PPSI-II Sukuk 'BB+(exp)'

Theindonesiatoday.com - Fitch Ratings has on Tuesday (October 11) assigned Perusahaan Penerbit SBSN Indonesia II's (PPSI-II) upcoming global certificates (sukuk) an expected 'BB+(exp)' rating. 

The rating is in line with the Republic of Indonesia's Long-Term Foreign Currency Issuer Default Rating of 'BB+', which has a Positive Outlook. (source)

INDONESIA - RATINGS - Bank Muamalat Affirmed 'A(idn)', Subordinated Bond 'A-(idn)' Indonesia Breaking News www.theindonesiatoday.com

Theindonesiatoday.com - Fitch Ratings has today affirmed PT Bank Muamalat Indonesia Tbk's (BMI) National Long-term rating at 'A(idn)' with stable outlook and its subordinated rupiah unsecured bonds issued in 2008 with no deferral clause at 'A-(idn)'.  (source)

CAPITAL MARKETS - Indonesia Rating Bets Drive New Sukuk Demand: Islamic Finance

Speculation Indonesia’s credit rating will be raised to investment grade may drive demand for the government’s second sale of global Islamic bonds.

I’d be interested because there’s the possibility of an investment-grade rating,” Mohd Noor Hj A Rahman, chief executive officer at Kuala Lumpur-based OSK-UOB Islamic Fund Management Bhd., said in an interview May 12. “Indonesia is a big market with potential for economic growth.” (full story)