Moody's revises Bank Permata's D- BFSR outlook to positive

Stocks and Financial Services Press Releases Monday December 5, 2011 11:34
Bangkok--5 Dec--Moody's Investors
Moody's Investors Service has revised the outlook on Bank Permata's bank financial strength rating (BFSR) of D- to positive from stable. The BFSR currently maps to a baseline credit assessment of Ba3.
All other ratings are unaffected, and carry stable outlooks as detailed below.

"The revised outlook reflects the positive trajectory in Bank Permata's financial metrics and franchise, partly due to the stability of its shareholding structure. The bank has been owned by a consortium comprising Standard Chartered Bank (B/A1 stable) and Astra International (not rated) since October 2004," says Beatrice Woo, a Moody's Vice President and Senior Credit Officer.

"Each entity holds an equal 44.515% stake in the bank. The benefits which we had anticipated the bank would derive from its parents -- technical expertise, management skills and business relationships -- have materialized. As a result, Permata's financial and operating metrics are breaking out of the bank's current standalone rating band," says Woo.

Bank Permata's BFSR would be upgraded if the bank, over the next two years and through the Euro-zone crisis, is able to maintain both its operating performance and key financial ratios. Its ability to steer through a challenging period would provide further evidence of its resilience. Similar to other Moody's-rated Indonesian banks, Permata's foreign currency deposit rating -- which is constrained -- could move up if the foreign currency deposit ceiling is raised.

While the positive outlook on its standalone ratings means that downgrades are unlikely, the BFSR would be under pressure if there was a sharp and sustained reversal in its trends. The latter include a return by the non-performing loan ratio to the end-2006 level of 6%, or a decline in capital levels, such that the bank's solvency would be threatened after incorporating possible losses in our scenario analysis. Finally, a change in major shareholder, which would create uncertainty about parental support could also lower the credit ratings.

The methodologies used in this rating were Bank Financial Strength

Ratings: Global Methodology published in February 2007, Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007, and Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt published in November 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

Bank Permata is headquartered in Jakarta and had assets of IDR92.6 trillion at September 2011. It is the eighth largest bank in the country with a 3% share of system deposits.
The detailed ratings and actions are shown below and carry stable outlooks unless indicated:

Global Local Currency deposit of Baa3, foreign currency long-term deposit rating of Ba2, foreign currency short-term deposit of Not Prime, and the outlook for the D- BFSR which maps to a stand-alone rating of Ba3 was changed to positive from stable.

REGULATORY DISCLOSURES
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available.

Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com for further information.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

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