TEXT-Fitch setting the Stage Bank Danamon on watch positive

(The following statement was released by the rating agency)

Oct 02 - Fitch Ratings maintain the Rating Watch Positive (RWP) on the ranks of Bank Danamon

, including the Long-Term Issuer Default Rating Rating (IDR) at 'BB +' and National Long-Term rating at 'AA (idn)'. Details of complete ranking can be found at the bottom of this report.

RWP result of the acquisition proposal 67.4% share held by Temasek Holdings (Temasek) by DBS Group Holdings (DBSGH). Completion of the takeover process, which was previously delayed due to anticipation of the issuance of Bank Ownership Regulation in Indonesia, is still pending approval from the regulator which is likely to take more than three months. Fitch expects to complete RWP so there is clarity of decision acquisition proposal and after Fitch completed an assessment of the potential of the tremendous support that can be given DBSGH at Bank Danamon.

If the acquisition is canceled, Fitch will likely reaffirm rank and assign Outlook Stable, given the strong capitalization of Bank Danamon, moderate income, and the credit crunch that is not high in the global economic situation is uncertain.

In April 2012, Fitch placed the Bank in RWP to reflect a positive impact on the risk profile of the Bank takeover proposal DBSGH having a stronger credit profile.

Here is the complete list of rankings:

Complete List of Actions The ratings for Bank Danamon

- Rating Long-Term IDR at 'BB +', with RWP

- Rating Short-Term IDR at 'B', with the RWP.

- National Long-Term Rating at 'AA + (idn), with RWP

- Support Rating at '3 ', with RWP

- Viability Rating affirmed at 'bb +'

((Bangalore Ratings Team, Hotline: +91 80 4135 5898, Bhanu.priya@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: Bhanu.Priya.reuters.com@reuters.net))