Moody's rates BFI Finance debt Baa1.id

Moody's Investors Service said it assigned a Baa1.id national scale rating to PT. BFI Finance Indonesia, Tbk's proposed debt issuance, Obligasi BFI Finance Indonesia tahun 2007, which will total as much as Rp300 billion and mature in 2009.

The outlook is stable.

Proceeds will be used to increase working capital. Supporting the rating is BFI Finance's fairly stable business profile, geographically diversified earnings base, moderate asset quality and stable financial performance, Moody's said.

The rating is constrained by corporate governance issues, including an ongoing litigation case involving two companies that were shareholders before its debt restructuring exercise, PT. Aryaputra Teguharta and PT. Ongko Multicorpora. So far, the Supreme Court has ruled in BFI Finance's favor, but the case is now under a final review, the agency said.

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