Moody's rates Panin Sekuritas bond A1.id

Moody's Investors Service said it assigned an A1.id national scale rating to PT Panin Sekuritas Tbk's proposed issuance of Rp 200 billion Obligasi Panin Sekuritas III Tahun 2007 bonds due 2012 and its outstanding Obligasi Panin Sekuritas I Tahun 2003.

The outlook is stable.

Proceeds from the new bond will be used to finance margin trading.

The agency said the A1.id rating is based on the company's positive earnings trend, anticipated shareholder support from Panin Bank and Moody's expectations that revenue from Panin Sekuritas' core margin lending business will continue to sustain its future profitability.

The rating acknowledges the possibility of future earnings volatility because the company's revenue from trading gains is subject to market cyclicality and expectations that Panin Sekuritas' business model may prompt increasing reliance on external funding, Moody's said.

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