Moody’s Investors Service has affirmed the deposit ratings of nine Indonesian banks. They are Bank Rakyat Indonesia, Bank Mandiri, Bank Central Asia, Bank Negara Indonesia, Bank Tabungan Negara, PT Bank CIMB Niaga, Pan Indonesia Bank, Panin, Bank Danamon Indonesia, and Bank Permata.
Moody’s expects that operating conditions in Indonesia (Baa2 stable) will continue to improve. In particular, the rebound in global trade and the recovery in global commodity prices will support a pickup in domestic economic growth.
Stabilizing commodity prices will be positive for income levels and domestic sentiment. Moody’s expects the positive momentum will translate into improved growth prospects and stabilizing asset quality for the banking system.
Moody’s also believes that the banking sector is emerging from the bottom of the credit cycle, as evidenced by the broad-based stabilization in the pace of the formation of new problem assets and the gradual recovery in loan demand.