Fitch Rates BFI's Medium Term Notes at 'F1(idn)'
This fourth issue of MTNs by BFI will be up to IDR255bn in size and the proceeds will be used to support the company's business growth.
'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 MTNs are rated at the same level as BFI's National Short-Term Rating in accordance with Fitch criteria.
BFI's National Ratings are driven by its standalone performance as one of the Indonesia's largest independent finance companies. BFI's financial performance has been solid in the past five years with its capitalisation profile remaining one of the strongest in the industry and its leverage ratio being one of the lowest among its peers.
Fitch expects BFI's financial performance to remain solid, although the operating conditions should continue to remain challenging in the next one to two years.
RATING SENSITIVITIES
Any changes in BFI's National Ratings would affect the issue ratings.
Any significant deterioration in BFI's profitability, capitalisation and asset quality is likely to exert downward pressure on its ratings. A rating upgrade is less likely given its reliance on wholesale funding - leading to inherently higher liquidity risk.
Комментарии