20240308_BTPN_Laporan Informasi dan Fakta Material_31595741_lamp2.pdf

3/8/24, 10:11 AM                                       Fitch Affirms Indonesia's Bank BTPN at 'AAA(idn)'; Outlook Stable

Strong Ability to Support: Fitch believes SMBC, one of Japan's three largest banking
groups, has considerable ability to support its Indonesian subsidiary, taking into account
SMBC's credit rating and BTPN's small size compared with SMBC. BTPN's total assets
and equity made up only 0.6% and 2.9%, respectively, of its parent's consolidated assets
and equity at end-9M23.


Strategically Important Subsidiary: BTPN's strategic role in the SMBC group includes
providing the group with a foothold in emerging Asia and in catering to Japanese clients
operating in Indonesia. Our view of SMBC's propensity to provide support to BTPN also
considers strong alignment between the two banks in key areas - operational, risk
management and key personnel - high reputational damage to the parent if the
subsidiary were to default, and the parent's majority ownership.


Moderate Standalone Strength: BTPN's National Long-Term Rating is not driven by its
standalone 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 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 our Indonesian national
ratings universe. This could result from a two-notch downgrade of SMBC's Long-Term
IDR to 'BBB', but we believe this prospect to be unlikely in the near to medium term.


A downgrade could also result from any perceived weakening in SMBC's propensity to
support BTPN. This could arise from a declining role for BTPN in the SMBC group,
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.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS



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3/8/24, 10:11 AM                                       Fitch Affirms Indonesia's Bank BTPN at 'AAA(idn)'; Outlook Stable

The ratings on the bank's rupiah-denominated senior unsecured bonds are at the same
level as its National Long-Term Rating, in accordance with Fitch's criteria. Indonesia does
not have a sophisticated resolution framework and we believe the bonds have average
recovery prospects.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

A change of BTPN's National Long-Term Rating would lead to a corresponding change in
the issue ratings.

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

BTPN's ratings are credit-linked to SMBC's Long-Term IDR, based on our expectation of
extraordinary shareholder support.

                                                  RATING ACTIONS



     ENTITY / DEBT                      RATING                                                         PRIOR 



     PT Bank BTPN Tbk                                                                                    AAA(idn) Rating
                                           Natl LT
                                                                                                         Outlook
                                                                                                         Stable
                                           AAA(idn) Rating Outlook Stable


                                           Affirmed



                                                                                                         F1+(idn)
                                           Natl ST        F1+(idn)        Affirmed



         senior unsecured                                                                                AAA(idn)
                                           Natl LT       AAA(idn)          Affirmed


VIEW ADDITIONAL RATING DETAILS


FITCH RATINGS ANALYSTS

Tisha Mamuaya
Analyst

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3/8/24, 10:11 AM                                       Fitch Affirms Indonesia's Bank BTPN at 'AAA(idn)'; Outlook Stable

Primary Rating Analyst
+62 21 4000 0544
tisha.mamuaya1@fitchratings.com
PT Fitch Ratings Indonesia
DBS Bank Tower 24th Floor, Suite 2403 Jl. Prof.Dr. Satrio Kav 3-5 Jakarta 12940


David Wong
Senior Director
Committee Chairperson
+852 2263 9927
david.wong@fitchratings.com

MEDIA CONTACTS

Leslie Tan
Singapore
+65 6796 7234
leslie.tan@thefitchgroup.com


Vivian Kam
Hong Kong
+852 2263 9612
vivian.kam@thefitchgroup.com


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

National Scale Rating Criteria (pub. 23 Dec 2020)
Bank Rating Criteria (pub. 02 Sep 2023) (including rating assumption sensitivity)



ADDITIONAL DISCLOSURES

Solicitation Status
Endorsement Policy


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3/8/24, 10:11 AM                                       Fitch Affirms Indonesia's Bank BTPN at 'AAA(idn)'; Outlook Stable

ENDORSEMENT STATUS

PT Bank BTPN Tbk                                                                                 -



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3/8/24, 10:11 AM                                       Fitch Affirms Indonesia's Bank BTPN at 'AAA(idn)'; Outlook Stable

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3/8/24, 10:11 AM                                       Fitch Affirms Indonesia's Bank BTPN at 'AAA(idn)'; Outlook Stable

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3/8/24, 10:11 AM                                       Fitch Affirms Indonesia's Bank BTPN at 'AAA(idn)'; Outlook Stable

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