Fitch assigns Alfamart bonds AA-(idn)

Fitch Ratings said it assigned PT Sumber Alfaria Trijaya Tbk.'s (Alfamart; AA-(idn)/stable) proposed Rp. 1 trillion bonds due in 2017 a rating of AA-(idn).

At the same time, the agency assigned an AA-(idn) rating to Alfamart's Rp. 2 trillion bond program. The proposed Rp. 1 trillion bonds will be issued under this bond program.

The bonds and bond program are rated at the same level as Alfamart's national long-term rating of AA-(idn) as they constitute direct, unconditional, and senior unsecured obligation of the company. The rating assigned to the bond program is no assurance that bonds issued under the program will be assigned a rating, or that the rating assigned to a specific issue will be the same as that of the program, the agency said.

Fitch said AA national ratings denote expectations of very low default risk relative to other issuers or obligations in the same country. The default risk inherently differs only slightly from that of the country's highest rated issuers or obligations.

Alfamart will use about 70% of the bonds proceeds for refinancing debt and the balance for working capital purposes.

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