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March 14 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has set senior unsecured bond ratings which is a phase III bond under the continuous bond program, PT Astra Federal International Finance (ASF; AAA (idn) '/ Stable), as follows:
- National Long-Term rating to bonds with maturities of up to three and four years at ‘AAA (idn)', and
- Short-term national rating for bonds with maturities of up to 370 days at ‘F1 + (idn)’
The maximum number of bond issuance was USD 1.95 billion and funds obtained from these bonds will be used to support the growth of the company’s business. AAA (idn)
National ranking in the category of ‘AAA’ denotes the highest rank Fitch on national rating scale for Indonesia. this ranking provided to an issuer or debt securities with the expectation of default risk the lowest relative to other issuers or securities in Indonesia. F1 (idn)
National Rating ‘F1’ indicates the capacity to pay financial commitments The most powerful in a timely manner relative to other issuers or debt securities in Indonesia. National rating scale of Fitch, the ratings given the lowest default risk relative to the rest of Indonesia. If specific liquidity profile is strong, a “+” is added to the ratings given.
Factors Stage Actuator
Bonds rated at the same level with Term National Rating Long and Short Term ASF. This is because the bonds reflects the company’s obligation is direct, not a debt and a senior subordinated unsecured obligations of the ASF and the equivalent with all unsecured obligations and other senior debt.
ASF’s ratings reflects Fitch’s expectation for the support and commitment Strong and sustained from the majority shareholder, PT Astra International Tbk (AI). Fitch classification of the ASF is a child AI core enterprise by considering the strategic role of the business ASF assembly and distribution of four-wheeled vehicles AI business. ASF play a role important to support AI car sales by providing financing services for buyers.
Change Level Term and Long Term ASF will influence stages of this obligation.
The decrease in the contribution from the ASF to the AI will have a negative impact on ASF ranks. Decreased significant ownership and AI deteriorating performance or reduced can also provide pressure support the ranks of the ASF, although Fitch saw the potential is small in the medium term due to the important role of ASF in business AI core four-wheeled vehicles. There is no ranking that has the potential rise located at the top level.