ICRA Indonesia assigns a rating of [Idr]A- with stable outlook to PT Bank Sinarmas TBk. December 14, 2011
PT ICRA Indonesia (ICRA
Indonesia) has assigned an issuer rating of [Idr]A- (pronounced (IDR) A minus)
with a Stable Outlook to PT Bank Sinarmas Tbk (BSIM). The rating indicates
adequate credit quality relative to other domestic issuers. The rating is only
an opinion on the general creditworthiness of the rated entity and not specific
to any particular debt instrument. The rating factors in its comfortable asset
quality indicators, stable net interest margin, and good capitalisation
profile, supported by strong parentage. The rating is however constrained by
BSIM’s presence in used two-wheeler and four-wheeler financing – considered as
relatively riskier segments, its relatively high dependence on channel financing,
the rapid growth in its loan portfolio (which can increase its risk profile),
and the relatively low proportion of its current account-saving account (CASA)
deposits (which increases costs).
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