Fitch Rates Astra Sedaya Finance's Senior Bond 'AAA(idn)'
The bonds, which will be issued under ASF's bond programme, will have a maturity of up to three years. Proceeds from the issue will be used to support the company's business growth.
'AAA' National Ratings denote the highest rating assigned by Fitch on its national rating scale for that country. This rating is assigned to issuers or obligations with the lowest expectation of default risk relative to all other issuers or obligations in the same country.
KEY RATING DRIVERS
The bonds are rated the same level as ASF's National Ratings. This is because they constitute direct, unsubordinated and senior unsecured obligations of ASF and rank equally with all its other unsecured and unsubordinated obligations.
ASF's rating reflects Fitch's expectation of continued strong support and commitment from its majority shareholder, PT Astra International Tbk (AI). The ratings also take into account ASF's strategic importance to the Astra Group in expanding the latter's car manufacturing and distributor business in Indonesia. As an integral part of AI's car business chain, ASF has an important role in providing direct financing services for AI's car sales.
Any significant decline in AI's ownership, performance or support, and significant reduction in ASF's contribution to AI would exert downward pressure on its ratings. However, Fitch sees this prospect as remote in the foreseeable future, given ASF's strategic importance to AI's car business. There is no rating upside as the rating is already at the top of the scale. Any changes in ASF's National Ratings would affect the issue ratings.