Fitch rates Surya Artha Nusantara notes AA(idn)

Fitch Ratings said it assigned a national long-term rating of AA(idn) to PT Surya Artha Nusantara Finance's Rp 300 billion medium-term notes IV/2013 with a maturity of up to 36 months.

The agency also said it assigned a national short-term rating of F1+(idn) to the notes. The proceeds will be used to support the company's business growth, Fitch said.

The notes are rated at the same level as the company's national long-term rating of AA(idn) as the notes will constitute direct and senior obligations of the company, the agency said, and rank equally with all its other senior obligations.

The ratings also reflect an expectation of continued strong support and commitment from its majority shareholder, PT Astra Internasional Tbk., the agency said.

The ratings also consider the company's strategic importance to the Astra Group as a financing arm in expanding the latter's heavy equipment distributor business in Indonesia through its subsidiary, PT United Tractors Tbk., Fitch said.

A challenging global economic outlook with weakening prices in mining and commodities could weaken the company's asset quality in 2013, the agency added.

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