Fitch Rating reaffirms the long-term default risk rating on the Rupiah bond from Export Financing Agency (Eximbank) by BBB with a stable outlook. The government’ support becomes Fitch’ benchmark that the lender’ capability can still be maintained in developing the country’ export industry.
Moreover, the company is regulated by Law Number 2 of 2009, which establishes the role of entity policy, legal status, supervision, dividend policy, and options for capital injection. This means that the bank is not subject to the state bankruptcy law, and can only be dissolved by the Special Parliamentary Act.
Based on the bill, the Indonesian government is legally required to maintain Eximbank‘ capital of at least Rp4 trillion (US$254.77 million) and capital injections have been carried out in the past. Fitch also ranked senior foreign currency and rupiah bonds at the same level, BBB.