Jakarta, 13 February 2026 - Fitch Ratings Indonesia (Fitch) has affirmed the National Long-Term Rating of PT BFI Finance Indonesia Tbk (BFI Finance) at ‘AA-(idn)’ with a Stable Outlook. Fitch has also affirmed the National Short-Term Rating at ‘F1+(idn)’ and the local-currency Bond rating at ‘AA-(idn)’.
The National ‘AA’ rating denotes expectations of a very low level of default risk relative to other issuers or obligations in the same country. The inherent default risk differs only slightly from that of the highest-rated issuers or obligations in the market.
The National Short-Term Rating of ‘F1’ indicates the strongest capacity for timely payment of financial commitments relative to other issuers or obligations within the country. Under Fitch’s National Rating scale, this rating signifies the lowest default risk among domestic issuers. Where the liquidity profile is assessed as particularly strong, a “+” symbol is added to the rating.
KEY RATING DRIVERS
Strong Stand-Alone Profile Supports the Rating: The rating reflects BFI Finance’s solid market position as Indonesia’s largest independent finance and leasing company. This position is supported by above-industry-average profitability, particularly on higher-yield used-car financing, adequate asset-quality management, low leverage, and sufficient liquidity buffers, all of which have underpinned the company’s ability to service its financial obligations across varying economic cycles.
Focus on Used-Vehicle Financing: BFI Finance’s portfolio is concentrated in used-vehicle financing, primarily serving middle- to lower-income customers. The company holds the largest market share in the domestic used-car financing segment, with a 3%-4% share of total managed receivables across the broader financing and leasing industry. BFI Finance also operates a well-established heavy-equipment financing business. Exposure to other financing product segments, such as property-related and sharia financing, are expected to remain limited.
Resilient Asset Quality: Although the company’s product portfolio carries relatively higher risk, Fitch believes that BFI Finance’s well-established underwriting standards and risk controls help maintain asset quality risk across various economic conditions. The non-performing financing (NPF) ratio increased slightly to 1.5% as of end-September 2025 ( vs 1.3% at end-2024), in line with a mild rise in credit impairments across the industry. However, the ratio remains well below the sector average of 2.5%. Provisioning coverage remains sufficient, at roughly 250% of total NPF, providing a strong buffer against potential asset-quality deterioration.
Above-Average Profitability: BFI Finance’s core used-car financing business generates strong yields, mitigating volatility in provisioning and funding costs. Combined with effective asset-quality management, this supports robust earnings performance. The ratio of pre-tax profit to average assets slightly declined from 7.9% in 2024 to 7.6% as of end September 2025, yet it remained well above the industry average of 4.8% during the same period.
Moderate Leverage: BFI Finance’s capital structure benefits from consistent internal capital generation and a conservative leverage approach. The company’s debt-to-tangible equity ratio stood at 1.3x at end-Q3 2025, improving from 1.4x at end-2024. Fitch does not expect a sharp increase in leverage as the company expands, as internally generated capital is considered sufficient to support growth. The moderate leverage also provides a cushion against potential asset-quality and liquidity pressures.
Adequate Liquidity Buffers : BFI Finance maintains sufficient liquidity to meet near-term obligations, supported by substantial cash reserves and undrawn committed credit facilities. Its liquidity coverage ratio—calculated as cash and undrawn committed facilities relative to short-term debt maturities—remains higher than that of many large domestic peers in the financing and leasing industry. Collections from short-term receivables further strengthen liquidity and provide ample coverage for short-term debt requirements.
The company’s ability to secure an increasing amount of unsecured funding also reflects lenders’ confidence in its credit profile. Moreover, the reduction in pledged assets as a result of higher unsecured funding enhances the company’s funding flexibility.
RATING SENSITIVITIES
A downgrade could result from a significant deterioration in asset quality, evidenced by a sustained non-performing financing ratio above 2%; a substantial increase in leverage; or a reduction in liquidity buffers leading to a liquidity coverage ratio falling below 1.5x on a sustained basis.
A prolonged weakening in BFI Finance’s market position or operating income could also pressure the ratings. Furthermore, a clear increase in the company’s risk appetite such as; looser underwriting standards, rapid growth in untested or higher-risk products, or recurring operational incidents e.g., cyberattacks or other extraordinary events, would have a negative impact on the rating.
An upgrade would only be possible if Fitch assesses that Indonesia’s financing and leasing sector operating environment has strengthened materially, potentially supported by an upgrade of Indonesia’s sovereign rating (BBB/Stable) or a meaningful improvement in GDP per capita, alongside sustained enhancement in BFI Finance’s franchise and financial profile. However, Fitch does not expect such broad-based improvements to occur within the next one to two years.
DEBT AND OTHER INSTRUMENT RATINGS : KEY FACTORS
BFI Finance’s Bonds rated at the same level as its National Long-Term Rating, as the Bonds represent the company’s direct obligations and rank (pari passu) with its other debt in the same class. Since 2024, BFI Finance has issued all Bonds on an unsecured basis.
DEBT AND OTHER INSTRUMENT RATINGS : RATING SENSITIVITIES
The company’s Bond ratings are sensitive to changes in its National Long-Term Rating. Any downgrade or upgrade of the issuer’s National Long-Term Rating will result in a corresponding change to the Bond ratings. Additional information is available on Fitchratings.