OREANDA-NEWS. Fitch Ratings Indonesia has assigned National Ratings to PT Bank Maybank Indonesia Tbk's (Maybank Indonesia; BBB/AAA(idn)/Stable) proposed issuance of rupiah sharia senior and rupiah subordinated bonds as follows:

- Sharia senior bonds up to a maximum of IDR700bn with a maturity of three years assigned a National Long-Term Rating of 'AAA(idn)'

- Subordinated bonds up to a maximum of IDR800bn with a maturity of seven years assigned a National Long-Term Rating of 'AA(idn)'

The bonds are issued under Maybank Indonesia's existing sharia senior Debt Programme I of up to IDR1trn and subordinated Debt Programme II of up to IDR3trn, to which Fitch had previously assigned National Long-Term Ratings of 'AAA(idn)' and 'AA(idn)', respectively. The proceeds will be used to support business growth.

'AAA' Long-Term National Ratings denote the highest rating assigned by Fitch on its national rating scale for that country. This rating is assigned to issuers or obligations with the lowest expectation of default risk relative to all other issuers or obligations in the same country.

'AA' National Ratings denote expectations of low default risk relative to other issuers or obligations in the same country. However, changes in circumstances or economic conditions may affect the capacity for timely repayment to a greater degree than is the case for financial commitments denoted by a higher rated category.

KEY RATING DRIVERS

The proposed senior debt is rated at the same level as Maybank Indonesia's National Long-Term Rating as it constitutes direct, unsubordinated and senior unsecured obligations of the company and ranks equally with all other unsecured and unsubordinated obligations.

The proposed subordinated debt is rated two notches below Maybank Indonesia's National Long-Term Rating - one notch for loss severity (reflecting their write-down features), and one notch for non-performance risk (reflecting their subordinated status and coupon and/or principal deferral risk). The notes will represent direct, subordinated and unsecured obligations of the bank and rank equally with all its other unsecured and subordinated obligations.

Maybank Indonesia's rating reflects Fitch's view of a high likelihood of timely support from its higher-rated parent, Malaysia-based Malayan Banking Berhad (Maybank; A-/Negative), in time of need. This view is based on Maybank Indonesia's strategic importance to Maybank's regional business expansion in south-east Asia, the parent's majority ownership/control, and a high level of integration with its parent.

RATING SENSITIVITIES

Any changes in the bank's National Rating would affect these issue ratings. Downward rating pressure may arise from a multi-notch downgrade of the parent's rating or any developments leading to a weakening of perceived support from the parent, such as major changes to ownership or a significant weakening in the parent's financial ability, although Fitch believes this to be a remote prospect in the near to medium term. There is no rating upside for the bank's rating as it is at the top of the scale.

Company has identified some of these forward-looking statements with words such as "anticipates," "believes," "expects," "estimates," "is likely," "predicts," "projects," "forecasts," "objectives," "may," "will," "should," "plans" and "intends" and the negative of these words or other comparable terminology. These forward-looking statements include statements relating to status of the separation process, the plan to pursue an IPO of up to 20 percent of the common stock of Company and the expected completion of the separation through the subsequent distribution of Company common stock, the anticipated timing of completion of the planned IPO and subsequent distribution of the remaining Company common stock, the plan to reorganize under a new public holding company to be called Company Global Holdings Inc. and Company's and Company's ability to pursue their long-term strategies. In addition, Company may from time to time make forward-looking statements in its annual report, quarterly reports and other filings with the SEC, news releases and other written and oral communications. These forward-looking statements are based on Company's expectations and assumptions, as of the date such statements are made, regarding Company's future operating performance and financial condition, including the proposed separation of its specialty chemicals and Company businesses, the proposed IPO of its Company business, the expected timetable for completing the IPO and the separation, the proposal to reorganize under a new holding company, the future financial and operating performance of each company, strategic and competitive advantages of each company, the leadership of each company, and future opportunities for each company, as well as the economy and other future events or circumstances. Company's expectations and assumptions include, without limitation, internal forecasts and analyses of current and future market conditions and trends, management plans and strategies, operating efficiencies and economic conditions (such as prices, supply and demand, cost of raw materials, and the ability to recover raw-material cost increases through price increases), and risks and uncertainties associated with the following: the possibility that the proposed IPO, new holding company reorganization or separation will not be consummated within the anticipated time period or at all, including as the result of regulatory, market or other factors or the failure to obtain shareholder approval of the new holding company reorganization; the potential for disruption to Company's business in connection with the proposed IPO, new holding company reorganization or separation; the potential that the new Company and Company do not realize all of the expected benefits of the proposed IPO, new holding company reorganization or separation or obtain the expected credit ratings following the proposed IPO, new holding company reorganization or separation; Company's substantial indebtedness (including the possibility that such indebtedness and related restrictive covenants may adversely affect Company's future cash flows, results of operations, financial condition and its ability to repay debt); the impact of acquisitions and/or divestitures Company has made or may make (including the possibility that Company may not realize the anticipated benefits from such transactions); severe weather, natural disasters, and legal proceedings and claims (including environmental and asbestos matters). Various risks and uncertainties may cause actual results to differ materially from those stated, projected or implied by any forward-looking statements, including, without limitation, risks and uncertainties affecting Company that are described in its most recent Form 10-K and its Form 10-Q for the quarterly period ended March 31, 2016 (including Item 1A Risk Factors) filed with the SEC, which is available on Company's website or on the SEC's website at http://www.sec.gov. Company believes its expectations and assumptions are reasonable, but there can be no assurance that the expectations reflected herein will be achieved. Unless legally required, Company undertakes no obligation to update any forward-looking statements made in this news release whether as a result of new information, future event or otherwise.