Fitch Ratings Indonesia has affirmed
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'F1' National Short-Term Ratings indicate the strongest capacity for timely payment of financial commitments relative to other issuers or obligations in the same country. Under the agency's National Rating scale, this rating is assigned to the lowest default risk relative to others in the same country or monetary union. Where the liquidity profile is particularly strong, a '+' is added to the assigned rating.
Key Rating Drivers
Support-Driven Rating: The National Long-Term Rating reflects Fitch's expectation that BWS's
Underpinned by Parent's Viability Rating: BWS's ratings are driven by Woori's Viability Rating, as we expect that any potential support is likely to come from Woori's internal resources.
Significant Ability to Support: We believe Woori has a strong ability to extend support to its Indonesian subsidiary. This is based on BWS's small size relative to its parent, with its assets constituting just 1.1% of Woori's consolidated assets at end-2023.
Strong Support Propensity: We believe that BWS is an important part of its parent's expansion in south-east
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade could result from a weakening of BWS's credit profile relative to entities in the Indonesian national rating universe. This could result from a two-notch downgrade in Woori's Viability Rating to 'bbb', although we believe this is unlikely in the near to medium term.
A weakening in the parent's propensity to provide support could also result in a downgrade. This could arise from major ownership changes or a weakening of BWS's role in the group, which could stem from a reassessment of Woori's business prospects in
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
There is no upside for the ratings, as they are already at the highest point on the scale.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
BWS's support-driven ratings are linked to Woori's Viability Rating, based on our expectation of extraordinary support.
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