Fitch Assigns ‘A+(idn)’ Rating to BFI Finance Indonesia’s Shelf-registration Bonds V


Fitch Ratings – Jakarta – 7 June 2021: Fitch Ratings Indonesia has assigned a rating of 'A+(idn)/Stable' to PT BFI Finance Indonesia Tbk's Shelf-registration Bond V program up to IDR6 trillion and the 1st Tranche Year 2021 of the Bonds issued under this program, consisting of:

  • Serie A: IDR200 billion with tenor of 370 days and final maturity on 8 June 2022; and
  • Serie B: IDR400 billion with tenor of three years and final maturity on 28 May 2024.

'A' National Long-Term Ratings denote expectations of a low level of default risk relative to other issuers or obligations in the same country or monetary union.

KEY RATING DRIVERS

The Bonds are rated at the same level as BFI Finance's National Long-Term Rating in accordance with Fitch's criteria, as they represent BFI Finance's direct obligations and rank pari passu with its other obligations in the same debt class. The obligations will be partially secured against the company's receivables as is common for Bonds issued by BFI Finance, and Fitch views the Bonds as having average recovery prospects in line with BFI Finance's other issuance in the same debt class.

BFI Finance's National Long-Term Rating is driven by its standalone profile. For more details, see “Fitch Revises Outlook on Indonesia’s BFI Finance to Stable; Affirms at ‘A+(idn)’”, at https://www.fitchratings.com/site/pr/10155013.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:

An upgrade of BFI Finance's National Long-Term Rating would result in an upgrade of its program and issue ratings.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

A downgrade of BFI Finance's National Long-Term Rating would cause a downgrade of its program and issue ratings.

Additional information is available on www.fitchratings.com.