Moody's reviews Mandiri, BRI ratings

JAKARTA: Moody's announced on Wednesday that it had placed the bank financial strength ratings (BFSR) of Bank Mandiri and Bank Rakyat Indonesia on review for a possible upgrade.

The BFSR of Bank Mandiri is E and Bank Rakyat Indonesia (BRI), E+. The credit ratings of both banks are unaffected.

For both banks, the review will consider improvements in their financial fundamentals, particularly in the areas of profitability, asset quality and capital, the rating agency said in a press statement.

In addition, the review will consider their managements' abilities to develop and sustain their franchise values, as well as longer term prospects in the changing banking system.

Bank Mandiri is the largest bank in the Indonesian banking system, controlling about a quarter of system deposits. It was established in 1998 during the economic crisis through the merger of four state-owned banks.

Founded in 1895, BRI is the fourth largest bank. Its primary role is to promote the country's microfinance sector. The bank is 100 percent owned by the government, which is expected to maintain a majority stake in the foreseeable future, despite privatization plans. -- JP