Fitch rates BFI Finance bonds AA-(idn)

Fitch Ratings said it assigned a national rating of AA-(idn) to PT BFI Finance Indonesia Tbk.'s proposed rupiah senior bonds of up to Rp1 trillion, which will be issued under the second tranche of its fourth bond program.

One of the tranches will have a maturity of 370 days and another will have a maturity of three years.

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

The AA national ratings denote expectations of very low default risk relative to other issuers or obligations in the same country, Fitch said.

The default risk inherently differs slightly from that of the country's highest rated issuers or obligations, the agency said.

The bonds are rated at the same level as BFI's national long-term rating as they constitute direct, unsubordinated and senior obligations of the company, Fitch said, and rank equally with all its other and unsubordinated obligations.

The ratings also consider the company's standalone profile as one of the largest independent finance companies in Indonesia, the agency said.

The company is mid-sized with sustained satisfactory financial performance and balance sheet, along with healthy profitability, manageable asset quality and a diversified funding profile, Fitch said.

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