Fitch assigns AAA for Bank Commonwealth

Fitch Ratings has today assigned PT Bank Commonwealth a national long-term rating of AAA (idn) with a stable outlook, individual rating at D, and support rating at 3.

In a press release obtained by Bisnis.com היום, the bank’s ratings reflect the support from its financially strong parent, the Commonwealth Bank of Australia (CBA) with long-term issuer default rating AA/stable).

Notwithstanding Bank Commonwealth’s relatively weak operating profitability over the past few years due to rapid expansion growth, the presence and commitment of its parent shareholder should help mitigate risks associated with the bank’s expansion into Indonesia’s market.

CBA’s commitment and, מכאן, propensity to support Bank Commonwealth is reflected in its 97% ownership and demonstrated capital support including the injection of IDR764 billion in additional capital over the past 3 years to finance Bank Commonwealth acquisition and organic growth.

Bank Commonwealth also adopts its parent’s name and its operations are aligned with its parent in most key areas such as risk management, systems, operating procedures, and reporting standards.

CBA has historically infused capital to maintain Bank Commonwealth’s capital adequacy ratio (כי) at a minimum of 12%.

At end of 2009, the CAR was 16.3%. Bank Commonwealth’s operating performance has remained weak since it embarked on rapid expansion from 2005.

The bank’s focus was to build its deposits franchise rather than its loan book.

על ידי: Wisnu Wijaya – bisnis.com