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Fitch Rates Indonesia's BII Finance Bonds 'AA+(idn)'
March 20, 2013 / 2:02 AM / 5 years ago

Fitch Rates Indonesia's BII Finance Bonds 'AA+(idn)'

(The following statement was released by the rating agency) JAKARTA/SEOUL/SINGAPORE, March 19 (Fitch) Fitch Ratings has assigned Indonesia-based PT BII Finance Center's (BIIF) IDR1.5trn senior unsecured bonds II/2013 with a maturity of up to five years a National Long-Term 'AA+(idn)' rating. Rating Action Rationale The bonds are rated the same level as BIIF's National Long-Term rating of 'AA+(idn)', as they reflect direct, unconditional, unsecured and unsubordinated obligations of the company. Proceeds from the issue will be used to support the company's business growth. BIIF's ratings reflect Fitch's expectation of timely support from their majority shareholder, PT Bank Internasional Indonesia Tbk (BII; BBB/AAA(idn)/Stable) and from the ultimate parent, Malayan Banking Berhad (Maybank, A-/Stable) in case of need. BIIF is wholly owned by BII and focuses on Indonesia's car financing business. These ratings take into account their linkage with and strategic importance to Maybank in expanding the latter's footprint in Indonesia's fast-growing consumer market. BII continues to support the funding of its subsidiaries through a joint financing scheme where BII assumes the bulk of the credit risk. Rating Drivers and Sensitivities Developments leading to a weakening of perceived support from its parent, such as major changes to ownership or a weakening in its parent's financial ability, could result in a multi-notch downgrade on BIIF. This is because the company's standalone credit profile is not sufficiently strong to support the current ratings. Contact: Primary Analyst Julita Wikana Director +62 21 2902 6405 PT Fitch Ratings Indonesia Level 20 Prudential Tower Jl. Jend. Sudirman Kav.79 Jakarta, Indonesia 12910 Secondary Analyst Iwan Wisaksana Director +62 21 2902 6406 Committee Chairperson Jonathan Lee Senior Director +886 2 8175 7601 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(idn)' for National ratings in Indonesia. Specific letter grades are not therefore internationally comparable. Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. Applicable criteria, "Global Financial Institutions Rating Criteria", dated 15 August 2012, "Finance and Leasing Criteria ", dated 12 December 2012, "Rating FI Subsidiaries and Holding Companies", dated 10 August 2012, and "National Ratings Criteria", dated 19 January 2011, are available at www.fitchratings.com. Applicable Criteria and Related Research Global Financial Institutions Rating Criteria here Finance and Leasing Companies Criteria here Rating FI Subsidiaries and Holding Companies here National Ratings Criteria here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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