Fitch Ratings Indonesia has affirmed
The Outlook is Stable. The bank's senior debt rating has also been affirmed at '
'
'F1(idn)' National Rating indicates the strongest capacity for timely payment of financial commitments relative to other issuers or obligations in the same country. Under the agency's National Rating scale, this rating is assigned to the lowest default risk relative to others in the same country or monetary union. Where the liquidity profile is particularly strong, a '+' is added to the assigned rating.
Key Rating Drivers
Support-Driven Rating: PTBC's national ratings reflect Fitch's view of a high likelihood of timely extraordinary support from its higher-rated parent,
Linked to its Parent's VR: PTBC is 99%-owned by CBA and its ratings are linked to the Viability Rating of its parent, as we believe there is sufficient uncertainty that support from the Australian government would flow through CBA to PTBC in the event of stress. Instead, we believe that potential support will most likely depend on CBA's own financial resources.
Considerable Ability to Support: Our view of CBA's ability to support its subsidiary considers the parent's high credit rating and PTBC's small size within the group, with total assets and equity accounting for only 0.2% and 0.5%, respectively, of its parent's consolidated assets and equity at end-2021.
High Propensity to Support: Our support assessment is also based on our view that PTBC is important to CBA's overseas presence, especially in south-east
Standalone Credit Profile: PTBC's standalone credit profile does not drive its ratings, but reflects the bank's small franchise, weak profitability and pressured asset-quality metrics. These factors are counterbalanced by satisfactory capitalisation and funding profiles, which benefit from ordinary support from CBA.
Rating Sensitivities
Factors that could, individually or collectively, lead to negative rating action/downgrade:
National Rating Relativity: A downgrade of PTBC's National Long-Term Rating would most likely arise from a weakening in its overall credit profile relative to the universe of entities rated on the
Parent's Propensity to Support: A weakening of CBA's propensity to provide support to PTBC could stem from major ownership changes or a very significant reduction of PTBC's role in the group, which may arise from a very significant deterioration in the group's perception of its business prospects in
Factors that could, individually or collectively, lead to positive rating action/upgrade:
No Upside: There is no rating upside for PTBC's National Ratings as they are at the highest point on the scale.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Senior Debt Rating: PTBC's senior unsecured bonds are rated at the same level as its National Long-Term Rating in accordance with Fitch's criteria, as they constitute its direct, unsubordinated and senior unsecured obligations and rank equally with all its other unsecured and unsubordinated obligations.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A downgrade of PTBC's National Long-Term Rating would lead to a corresponding downgrade of the bank's senior unsecured bond rating.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
PTBC's senior bond rating has no upside potential as it is at the highest point on the scale.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
PTBC's support-driven ratings are linked to CBA's VR based on our expectation of extraordinary support.
RATING ACTIONS
Entity / Debt
Rating
Prior
Natl LT
Affirmed
Natl ST
F1+(idn)
Affirmed
F1+(idn)
senior unsecured
Natl LT
Affirmed
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