Fitch Ratings Indonesia has published the 'AA-(idn)' rating of PT BFI Finance Indonesia Tbk's (AA-(idn)/Stable) fifth tranche of bonds issued under the company's fifth bond programme.

The tranche consists of:

Series A: IDR250 billion of 6.00% 370-day bonds due June 2024; and

Series B: IDR850 billion of 7.00% three-year bonds due June 2026.

'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.

Key Rating Drivers

The bonds are rated at the same level as BFI's National Long-Term Rating, under Fitch's criteria, as they represent BFI's direct obligations and rank pari passu with its other obligations in the same debt class.

The obligations are 50% secured against the company's receivables as is common for bonds issued by BFI, but we do not view this as providing credit enhancement, in line with Fitch's criteria for entities in Indonesia.

BFI's National Long-Term Rating is driven by its standalone profile. For more details, see 'Fitch Upgrades Indonesia's BFI Finance to 'AA-(idn)'; Outlook Stable', published on 2 March 2023.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

A downgrade of BFI's National Long-Term Rating would lead to similar action on the ratings of its senior bond programme and issuance.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

An upgrade of BFI's National Long-Term Rating would result in corresponding action on its senior bond programme and issuance ratings.

Date of Relevant Committee

01 March 2023

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.

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