Moody’s has assigned Baa2 long-term foreign currency senior unsecured rating to Bank Mandiri’s $2 billion EMTN programme.
The notes issued under the programme constitute the issuer’s direct, unconditional as well as unsubordinated and unsecured obligations, and will rank pari-passu with the bank’s other senior unsecured obligations.
In a statement, Moody’s said that Bank Mandiri’s Baa2 deposit rating incorporates one notch of uplift from the bank’s baseline credit assessment of baa3, based on assessment of a very high probability of support from Indonesia.
Additionally, the rating agency said that its support assumptions are based on the bank’s position as one of the largest banks in the country, Indonesia’s 60 per cent ownership of the bank and the critical role that the bank plays in the Indonesian economy.
Bank Mandiri’s baseline credit assessment (BCA) of baa3 is underpinned by its robust profitability and strong funding and liquidity.
Similarly, the lender’s asset quality has stabilised as a result of a slower new problem loan formation rate and improved operating conditions.
Source: Islamic Business and Finance