Bank Shinhan Indonesia rated AAA with stable outlook
PEFINDO has assigned its "AAA" rating to PT Bank Shinhan Indonesia (Bank Shinhan Indonesia). The outlook for the corporate rating is "stable".
An obligor rated AAA has the highest rating assigned by PEFINDO. The obligors' capacity to meet its long-term financial commitment, relative to that of other Indonesian obligors, is superior.
The rating reflects the Bank’s very strong likelihood of support from Shinhan Bank Co Ltd (the Parent) and very strong capitalization.
The rating is constrained by the Bank’s concentrated business and moderate profitability.
The rating could be lowered should PEFINDO consider that the Bank's importance to and support level from the Parent diminishes significantly.
Bank Shinhan Indonesia focuses on the corporate segment, providing banking services for Korean corporations and local companies.
It also provides SME loans and consumer loans for permanent employees. As of September 30, 2018, it was 99.0% owned by Shinhan Bank, 0.53% by PT Metropanca Gemilang, and 0.47% by PT STM Tunggal Jaya.