Fitch rates BFI Finance bonds A+(idn)

Fitch Ratings said it assigned a national long-term rating of A+(idn) to PT BFI Finance Indonesia Tbk.’s proposed first tranche of rupiah senior unsecured bonds, along with a national short-term rating of F1(idn).

The bonds issued under the first tranche will be up to Rp 1 trillion in size with a maturity of up to three years.

The proceeds will be used mainly to support the company’s business growth, Fitch said.

The bonds are rated at the same level as BFI’s national long-term and short-term ratings, the agency said, and are driven by the company’s standalone performance as one of the largest independent finance companies in Indonesia.

BFI had a solid financial record during the last five years with high capitalization and an equity-to-assets ratio continuing to be one of the highest in Indonesia’s multi-finance industry, Fitch said.

The company is vulnerable to deterioration in asset quality, which would impact the company’s profitability and capitalization.

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