Fitch Rates BII Finance's Senior Bond 'AA (idn)'
'AA' National Ratings denote expectations of low default risk relative to other issuers or obligations in the same country. However, changes in circumstances or economic conditions may affect the capacity for timely repayment to a greater degree than is the case for financial commitments denoted by a higher rated category.
'F1' National Short-Term Ratings indicate the strongest capacity for timely payment of financial commitments relative to other issuers or obligations in the same country. On Fitch's National Rating scale, this rating is assigned to the lowest default risk relative to others in the same country. Where the liquidity profile is particularly strong, a "+" is added to the assigned rating.
KEY RATING DRIVERS
The bonds are rated at the same level as BIIF's National Long-Term and Short-Term Ratings in accordance with Fitch criteria.
BIIF's ratings reflect strong support from its parent PT Bank Internasional Indonesia Tbk (BII, AAA(idn)/Stable), and ultimate parent Malayan Banking Berhad (Maybank, A-/Negative), if needed. Fitch views BIIF as a strategically important subsidiary of BII because of their strong linkages. The view is reinforced by the parent's full ownership of and name sharing with the subsidiary, strong operational alignment between the two and provision of funding support by the parent to the subsidiary.
Any changes in BIIF's National Ratings would affect the issue ratings.
Any weakening in the propensity or ability of BII and, ultimately, Maybank to support BIIF would put pressure on its National Ratings. Rating upside could arise if BIIF is perceived to have become even more important to BII and Maybank, along with further evidence of seamless integration between BIIF and BII, and of continued parental support.