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20250303_BTPN_Laporan Informasi dan Fakta Material_31865646_lamp2.pdf
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2/28/25, 4:49 PM Fitch Affirms Bank SMBC Indonesia at 'AAA(idn)'; Outlook Stable RATING ACTION COMMENTARY Fitch Affirms Bank SMBC Indonesia at 'AAA(idn)'; Outlook Stable Fri 28 Feb, 2025 - 3:10 AM ET Fitch Ratings - Jakarta - 28 Feb 2025: Fitch Ratings Indonesia has affirmed PT Bank SMBC Indonesia Tbk's (SMBCI) National Long-Term Rating at 'AAA(idn)' with a Stable Outlook and National Short-Term Rating at 'F1+(idn)'. 'AAA' National Long-Term Ratings denote the highest rating assigned by the agency in its National Rating scale for that country. This rating is assigned to issuers or obligations with the lowest expectation of default risk relative to all other issuers or obligations in the same country or monetary union. 'F1' National Short-Term Ratings indicate 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 Ratings: SMBCI's National Ratings are support-driven and reflect Fitch's expectation that the bank's higher-rated ultimate parent, Sumitomo Mitsui Financial Group (SMFG, A-/Stable/a-), has a high ability and propensity to extend extraordinary support to its subsidiary, if needed. SMBCI is 91%-owned by Sumitomo Mitsui Banking Corporation (SMBC, A/Stable/a-), which is wholly owned by SMFG. Linked to Ultimate Parent's IDR: SMBCI's rating is linked to SMFG's Long-Term Issuer Default Rating (LT IDR). This reflects our belief that any extraordinary support, if required, would flow from the Japanese government through SMFG and SMBC to SMBCI, with SMFG acting as the single point of entry. We believe SMBCI plays a strategic role in the https://www.fitchratings.com/research/banks/fitch-affirms-bank-smbc-indonesia-at-aaa-idn-outlook-stable-28-02-2025 1/4
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2/28/25, 4:49 PM Fitch Affirms Bank SMBC Indonesia at 'AAA(idn)'; Outlook Stable group's presence in emerging markets in Asia. SMBCI is the first entity outside Japan that offers full banking services including retail banking under the SMBC brand. Strong Ability to Support: Fitch believes SMFG, one of Japan's three largest banking groups, has strong ability to support its Indonesian subsidiary, considering SMFG's credit rating and SMBCI's small size compared with SMFG. SMBCI's total assets and equity accounted for only 0.8% and 3.4%, respectively, of SMFG's consolidated assets and equity at end-9M24. We believe the resources needed to recapitalise SMBCI, if needed, would remain immaterial relative to SMFG's capacity in the near to medium term. Strategically Important Subsidiary: SMBCI enables the group to cater to Japanese clients operating in Indonesia and is a key part of the group's strategy in emerging Asia. Our assessment of SMFG's propensity to provide support to SMBCI also takes into consideration the close operational integration of the entities and the potential for high reputational damage to the parent if the subsidiary were to default, given their shared branding and the parent's majority ownership of SMBCI. Moderate Standalone Strength: SMBCI National Long-Term Rating is not driven by its standalone credit profile, which is constrained by its moderate franchise as a mid-sized Indonesian bank. The bank has moderate profitability and better asset quality than most domestic peers, and its capitalisation, as well as funding and liquidity profile, benefits from ordinary support from SMFG through SMBC. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of the National Long-Term Rating could result from a weakening in the bank's overall credit profile relative to other entities within the universe of Indonesian national ratings. This could result from a two-notch downgrade of SMFG's Long-Term IDR to 'BBB'. A downgrade could also result from any perceived weakening in SMFG's propensity to support SMBCI. This could arise from a declining role for SMBCI in SMFG, perhaps due to a reassessment of its business prospects in Indonesia, or a major change in ownership - although Fitch sees little risk of these occurring in the near to medium term. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade There is no rating upside, as the ratings are already at the highest point on the National Rating scale. https://www.fitchratings.com/research/banks/fitch-affirms-bank-smbc-indonesia-at-aaa-idn-outlook-stable-28-02-2025 2/4
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2/28/25, 4:49 PM Fitch Affirms Bank SMBC Indonesia at 'AAA(idn)'; Outlook Stable
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
SMBCI's ratings are credit-linked to SMFG's Long-Term IDR.
ESG CONSIDERATIONS
Not applicable.
RATING ACTIONS
ENTITY / DEBT RATING PRIOR
PT Bank SMBC AAA(idn)
Natl LT AAA(idn) Affirmed
Indonesia Tbk
F1+(idn)
Natl ST F1+(idn) Affirmed
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VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the
transaction parties participated in the rating process except that the following issuer(s), if
any, did not participate in the rating process, or provide additional information, beyond the
issuer’s available public disclosure.
APPLICABLE CRITERIA
https://www.fitchratings.com/research/banks/fitch-affirms-bank-smbc-indonesia-at-aaa-idn-outlook-stable-28-02-2025 3/4
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2/28/25, 4:49 PM Fitch Affirms Bank SMBC Indonesia at 'AAA(idn)'; Outlook Stable National Scale Rating Criteria (pub. 23 Dec 2020) Bank Rating Criteria (pub. 16 Mar 2024) (including rating assumption sensitivity) ADDITIONAL DISCLOSURES Solicitation Status Endorsement Policy ENDORSEMENT STATUS PT Bank SMBC Indonesia Tbk - DISCLAIMER & DISCLOSURES All Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.fitchratings.com/understandingcreditratings. In addition, the following https://www.fitchratings.com/rating-definitions-document details Fitch's rating definitions for each rating s READ MORE SOLICITATION STATUS The ratings above were solicited and assigned or maintained by Fitch at the request of the rated entity/issuer or a related third party. Any exceptions follow below. ENDORSEMENT POLICY Fitch’s international credit ratings produced outside the EU or the UK, as the case may be, are endorsed for use by regulated entities within the EU or the UK, respectively, for regulatory purposes, pursuant to the terms of the EU CRA Regulation or the UK Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019, as the case may be. Fitch’s approach to endorsement in the EU and the UK can be found on Fitch’s Regulatory Affairs page on Fitch’s website. The endorsement status of international credit ratings is provided within the entity summary page for each rated entity and in the transaction detail pages for structured finance transactions on the Fitch website. These disclosures are updated on a daily basis. https://www.fitchratings.com/research/banks/fitch-affirms-bank-smbc-indonesia-at-aaa-idn-outlook-stable-28-02-2025 4/4
Names mentioned 6 people and organisations named in the text · linked when the evidence is strong
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Sumitomo Mitsui Banking Corporation
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Affirmed Indonesia Tbk
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