Moody's reviews Mandiri, BRI ratings

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