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Bank Muamalat | Fitch Ratings Affirms Bank Muamalat’s National Long Term Rating as ‘A’
29.05.2013

Rating agency Fitch Ratings has affirmed PT Bank Muamalat Indonesia’s national long term rating as ‘A’ with a stable outlook and its subordinated debt rating at BBB.

The rating agency explained that the bank’s planned rights issue will provide a significant capital injection in order to boost its capitalisation and thus contributed to its positive long term outlook. Bank Muamalat’s key position within the Indonesian banking industry due to its role in developing the shariah banking sector meant that government support could also be relied upon which is a further underpinning factor for its long term rating.

Fitch Ratings also noted that there is no downgrade pressure providing government support remains intact towards the Islamic banking segment. A ratings upgrade would require improvements in profitability, capital position and asset quality. Each of these factors have been accounted for in Bank Muamalat’s newly implemented corporate strategy which is beginning to bear fruit and which coupled with its rights issue will see the bank in even stronger stead for the future.

Bank Muamalat