Fitch Affirms BRIsyariah’s IDR 1 Trillion Subordinated Sukuk at ‘A(idn)’

Fitch Ratings (Fitch) Indonesia has affirmed Bank BRIsyariah’s (BRIS, BB+/AA(idn)/Stable) national rating on its Subordinated Sukuk (Sukuk) at ‘A(idn)’.

According to IslamicMarkets Sukuk Monitor, the Sukuk, which is worth IDR 1 trillion, was issued in November 2016, priced at IDR 100 and is set to mature in November 2023. Proceeds of the Sukuk will be used to boost capital structure to support business development activities.

Fitch’s notes that its Sukuk programme was rated three notches below its National Long-Term Rating, two notches for loss severity to indicate subordination and risk of conversion and one notch for non-performance to reflect the risk of...