OREANDA-NEWS. PT Fitch Ratings Indonesia has assigned ratings to Indonesia-based PT Wahana Ottomitra Multiartha Tbk's (WOM Finance; AA(idn)/Stable) proposed senior unsecured bonds as follows:

- bonds with maturity of three years assigned National Long-Term Rating of 'AA(idn)', and
- bonds with maturity of 370 days assigned National Short-Term Rating of 'F1+(idn)'.

This is the third tranche to be issued under WOM Finance's debt programme. The bond issue will be up to IDR1tn in size and proceeds will be used to support the company's business growth.

'AA' National Long-Term 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 and debt programme are rated at the same level as WOM Finance's National Ratings. This is because they constitute direct, unsubordinated and senior unsecured obligations of WOM Finance and rank equally with all its other unsecured and unsubordinated obligations.

WOM Finance's ratings reflect Fitch's expectation that the company will continue to benefit from funding support from PT Bank Internasional Indonesia Tbk (BII; BBB/AAA(idn)/Stable), which owns 62% of WOM Finance. The ratings also reflect relatively moderate linkage with BII and a moderate probability of extraordinary support from BII, if needed. BII is owned by Malayan Banking Berhad (Maybank; A-/Negative).

RATING SENSITIVITIES
Any significant dilution in ownership by, or perceived weakening of support from the parents would exert downward pressure on the ratings on WOM Finance, including the possibility of multi-notch downgrades. However, Fitch sees this prospect as remote in the foreseeable future, given its strategic role in expanding its parents' business exposure in Indonesia's fast-growing consumer financing market.

Any changes in WOM Finance's National Ratings would affect the issue ratings.