Fitch: Astra Sedaya bonds AAA(idn)/F1+(idn)

Fitch Ratings said it assigned ratings to PT Astra Sedaya Finance's (AAA(idn)/stable) proposed senior unsecured bonds, the fourth tranche to be issued this year under the program, as follows: bonds with maturity of three years assigned national long-term rating of AAA(idn); and bonds with maturity of 370 days assigned national short-term rating of F1+(idn).

The bond issue will be up to Rp. 2.5 trillion in size and the proceeds will be used to support the company's business growth.

The bonds are rated at the same level as Astra Sedaya’s national long-term and short-term ratings. This is because they constitute direct, unsubordinated and senior unsecured obligations of Astra Sedaya and rank equally with all other unsecured and unsubordinated obligations.

The ratings reflect Fitch's expectation of continued strong support and commitment from its majority shareholder, PT Astra International Tbk. The agency’s classification of Astra Sedaya as a core subsidiary of Astra International captures Astra Sedaya’s strategic importance to the parent's car manufacturing and distributing business in Indonesia. Astra Sedaya provides direct financing services for buyers who purchase Astra International’s cars, playing an important role in supporting Astra International’s sales.

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