Fitch rates Alfamart bond AA-(idn)

Fitch Ratings published an AA-(idn) national long-term rating on PT Sumber Alfaria Trijaya Tbk.'s (Alfamart) proposed Rp 3 trillion bond program and proposed Rp 1 trillion senior unsecured bond issued under the program.

The proceeds will be used to refinance existing debt, Fitch said.

The agency said it expects Alfamart to continue its store rollout at a rate of 1,200 stores per year in 2017 and 2018.

Fitch also said it expects its Alfamidi store format to expand at a stable rate of 200 stores per year over the same period.

The agency said it expects more than 60% of the new stores to be located outside Java in areas with low modern retail penetration and higher revenue growth rates.

Alfamart's credit profile is supported by its resilient product composition compared with larger retailers, Fitch noted.

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