Fitch lowers Sinar Mitra, rates notes BBB(idn)

Fitch Ratings said it downgraded PT Sinar Mitra Sepadan Finance's national long-term rating and rupiah-denominated senior bond I/2009 to BBB(idn) from BBB+(idn).

The outlook is stable.

The agency also said it assigned it a national short-term rating of F3(idn), along with an expected BBB(idn) rating on its 370 days medium-term notes I/2011 of up to Rp 200 billion.

The downgrade reflects deterioration in the company's asset quality due to rapid loan growth and weakening collection performance, Fitch said.

Significant increases in credit costs in 2010 through the first quarter of 2011 also have reduced profitability, the agency said.

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