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TEXT-Fitch to assign rating watch positive Bank Danamon

(The following statement was released by the rating agency)

Oct 03 - 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.