PT Bank Mandiri Tbk (IDX: BMRI) looking fresh funds from Eurobond market around US$2 billion - Photo: Special

JAKARTA (TheInsiderStories) – Moody’s Investors Service has assigned a (P)Baa2 long-term foreign currency senior unsecured rating to Bank Mandiri (P.T.)’s (Baa2 stable, baa3) US$2 billion Euro Medium Term Note (EMTN) program.

The (P)Baa2 rating on the EMTN program is in line with the bank’ Baa2 STA foreign currency deposit rating.


The notes issued under the program constitute the issuer’s direct,
unconditional, unsubordinated, and unsecured obligations, and will rank pari-passu with the bank’s other senior unsecured obligations.

Bank Mandiri‘ Baa2 deposit rating incorporates one notch of uplift from the bank’ baseline credit assessment (BCA) of baa3, based on Moody’s assessment of a very high probability of support from the Government of Indonesia (Baa2 stable), in times of need.

Moody’s support assumptions are based on the bank’ position as one of the largest banks in the system, the government’s 60 percent ownership of the bank, and the critical role that the bank plays in the Indonesian economy.

The ratings do not apply to any individual notes issued under the program. Ratings on individual notes issued under the program will be subject to Moody’s satisfactory review of the terms and conditions set forth in the final base and supplementary offering circular, and the pricing supplements of the notes to be issued.

Bank Mandiri‘ BCA of baa3 is underpinned by its robust profitability and strong funding and liquidity. The bank’s asset quality has stabilized as a result of a slower new problem loan formation rate and improved operating conditions. While Bank Mandiri’s capitalization may begin to moderate as loan growth rebounds, Moody’s expects its capitalization to remain high relative to Moody’s rated universe in Indonesia.


The state-owned bank’ deposit ratings are already at the level of the sovereign rating of Baa2 with a stable outlook. As such, Moody’s could upgrade the bank’ ratings if Indonesia’s sovereign rating is upgraded.

Bank Mandiri‘ BCA could be upgraded if its credit fundamentals remain robust or the bank improves its asset quality, supported by a continued strengthening of its loss-absorbing buffers, including loan-loss reserves and core capital.


The bank’ deposit ratings could be downgraded if Indonesia’s sovereign rating is downgraded. Bank Mandiri’ BCA could be downgraded if its financial fundamentals deteriorate significantly.

All other rating factors remaining constant, its BCA would come under downward pressure if the bank reports a continued increase in problem loans — including nonperforming and restructured loans — or a material decline in its core capital ratios or profitability.

Headquartered in Jakarta, Bank Mandiri (P.T.)’s reported total assets of  Rp1,202 trillion ($82.5 billion) as of 31 December 2018.

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