Fitch Indonesia Affirms BTPN Syariah’s National Long-Term Rating at ‘AAA(idn)’; Stable Outlook

Fitch Ratings Indonesia (Fitch Indonesia) has affirmed Bank BTPN Syariah’s (BTPN Syariah) National Long-Term Rating at ‘AAA(idn)’, with a Stable Outlook.

Ratings Rationale

BTPN Syariah’s rating is support-driven and reflects Fitch Indonesia’s view of a high likelihood of support from its parent Bank BTPN (BTPN; AAA(idn)/Stable), which owns a 70% stake in the company. Meanwhile, BTPN’s ratings are also driven by support from Sumitomo Mitsui Banking Corporation (SMBC, A/Negative/a), which is the ultimate parent. According to Fitch Indonesia, BTPN has a high inclination to support the bank given BTPN Syariah’s important role in the group. BTPN Syariah focuses on the ultra-micro and Shariah financing businesses,...