Fitch Ratings Indonesia has revised the Outlook on the National Long-Term Rating of PT JACCS Mitra Pinasthika Mustika Finance Indonesia (JACCS MPMF) to Stable from Negative.
The National Long-Term Rating has been affirmed at 'AA(idn)'. A full list of ratings is below.
The action mirrors the Outlook revision on the Long-Term Issuer Default Ratings of JACCS MPMF's ultimate parent,
'AA' National Long-Term Ratings denote expectations of a very low level of default risk relative to other issuers or obligations in the same country or monetary union. The default risk inherent differs only slightly from that of the country's highest rated issuers or obligations.
'F1' National Short-Term Ratings indicate the strongest capacity for timely payment of financial commitments relative to other issuers or obligations in the same country. Under the agency's National Rating scale, this rating is assigned to the lowest default risk relative to others in the same country or monetary union. Where the liquidity profile is particularly strong, a '+' is added to the assigned rating.
KEY RATING DRIVERS
Key rating drivers for JACCS MPMF can be found in the rating action commentary published
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Any negative rating action on MUFG or deterioration in JACCS's credit profile, which Fitch sees as better than that of its subsidiary, is likely to result in similar action on JACCS MPMF's National Long-Term Rating. Any change in assumptions pointing to a deterioration in the
Fitch may also downgrade JACCS MPMF's ratings if we perceive that JACCS's or MUFG's motivation to support the entity has weakened, such as due to a significant reduction in the parent's stake or a perceived failure to meet the parent's objectives. A multiple-notch downgrade is possible under these scenarios.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Greater synergies and integration between JACCS MPMF and its parent could lead to an upgrade of the National Long-Term Rating. This may be reflected in an increased contribution from JACCS MPMF to its parent's business and financial objectives, or from closer alignment of the parent's and subsidiary's operations, although Fitch does not expect any significant shifts in these factors in the short term.
An increased stake by JACCS in JACCS MPMF or stronger integration between JACCS MPMF and JACCS's other overseas operations, along with an increased contribution from JACCS's international businesses in aggregate, could also strengthen the support assessment for JACCS MPMF.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
JACCS MPMF's rating reflects Fitch's expectation of extraordinary support from majority shareholder JACCS and ultimate parent MUFG, if needed.
RATING ACTIONS
ENTITY/DEBT RATING PRIOR
PT JACCS Mitra Pinasthika Mustika Finance Indonesia Natl LT AA(idn) Affirmed AA(idn)
Natl ST F1+(idn) Affirmed F1+(idn)
senior unsecured
Natl LT AA(idn) Affirmed AA(idn)
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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