Fitch rates Astra Sedaya Finance bonds AAA(idn)

Fitch Ratings said it assigned a national long-term rating of AAA(idn) to PT Astra Sedaya Finance’s proposed bonds with maturity of three years and an F1+(idn) rating on its proposed bonds maturity of 370 days.

The senior unsecured bonds are the fifth tranche to be issued this year under the company’s program.

The issue will be for up to Rp 1.575 trillion and the proceeds will be used to support the company’s business growth, Fitch said.

The AAA national long-term rating denotes the highest rating assigned by Fitch on its national rating scale for that country, the agency explained.

This rating is assigned to issuers or obligations with the lowest expectation of default risk relative to all other issuers or obligations in the same country, Fitch said.

The bonds are rated at the same level as the company’s national long-term and short-term ratings, the agency said.

The ratings consider an expectation of a high probability of support from its majority shareholder, PT Astra International Tbk., Fitch said.

The agency also said it expects the company to continue delivering healthy profitability in 2015 in spite of a challenging economic environment, underpinned by its manageable credit and funding costs.

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