Shinhan Bank said on Dec. 30 that Bank Shinhan Indonesia, a local corporation of Shihan Bank in Indonesia, has obtained the highest credit rating of AAA from the Indonesia's credit rating agency PEFINDO.
"PEFINDO" is the oldest and most trusted rating agency in Indonesia. The credit rating granted by PEFINDO is becoming a major measure of corporate credibility in Indonesia.
Bank Shinhan Indonesia, which has been preparing to earn a credit rating since April, has attained the highest credit rating since its inception in December 2016, as it has been highly valued for its stable asset structure, diversified procurement structure, and a segmented risk management system. The "AAA" rating is held by major state-run banks, including Mandiri Bank and BRI Bank, and large private banks such as BCA Bank in Indonesia.
With the credit rating, Bank Shinhan Indonesia has gained high public confidence in its credit rating, allowing it to attract deposits from state-run and large private companies at low interest rates more smoothly. In addition, it can issue CDs and bonds at lower interest rates, which will give it an advantageous position in financing for the mid- and long-term.
Meanwhile, Bank Shinhan Indonesia currently manages its soundness in the face of rapid growth with assets of 12 trillion rupiah and 0.8 percent NPL.
"We have obtained an equivalent credit rating to Indonesia's state-run banks, which have assets more than 100 times larger," a Shinhan Bank official said. "We will continue to diversify our funding structure and build a foundation for continued growth in Indonesia's financial markets."
