Fitch puts WOMF on watch

Fitch Ratings said it placed PT Wahana Ottomitra Multiartha Tbk.'s (WOMF) national long-term rating of AA(idn) and national short-term rating of F1+(idn) on Rating Watch negative.

The company's senior bond ratings also were placed on negative watch.

The negative watch follows news that PT Bank Maybank Indonesia Tbk., WOMF's 68.55% parent, entered into a conditional share purchase agreement with PT Reliance Capital Management for the sale of Maybank Indonesia's entire equity interest in WOMF to Reliance Capital Management, Fitch explained.

The finalization of the sale is subject to fulfillment of conditions in the purchase agreement and regulatory approval, the agency said.

The transaction is expected to close in the first quarter of 2017, Fitch said.

The ratings are support-driven, reflecting an expectation of a moderate probability of extraordinary support from Maybank Indonesia, if required, the agency said.

The negative watch reflects an expectation that WOMF's rating post-sale would be more likely driven by its weaker intrinsic credit profile, Fitch said.

The agency said it has not yet assessed the new shareholder, Reliance Capital Management or the impact on WOMF after the deal closes.

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