TEXT-Fitch rates SANF MTN at 'AA (idn)'
SANF ratings reflect Fitch's expectation for their support and commitment to a strong and sustained shareholder, PT Astra International Tbk (AI). Ratings also consider the strategic importance of the Astra Group SANF as an arm of the business expansion in the sector of heavy equipment through its subsidiary, PT United Tractors Tbk. The tendency of weakening the support of our parent company, AI, and changes in the financial performance of AI that will significantly affect the ranking SANF.
Fitch notes the challenging global economic outlook with decreasing commodity prices and mining - sectors where SANF operate - and a strong credit growth in the last two years could lead to an increase in problem loans in 2013. Loans past due 1-60 days increased to 28% of total receivables in 9M12 (2011: 12%) could lead to an increase in problem loans in the economic environment worse. Profitability and allowance for troubled loans is expected to continue to provide an adequate buffer against losses on the cost of credit.
SANF founded in 1983 by the Astra Group and focus on heavy equipment financing business. The company is owned by Astra International (60% ownership) and Marubeni Group (40%).
- Children's corpses reveal desperate attempts to escape Korean ferry |
- Ukraine's leaders say have U.S. backing to take on 'aggressors' |
- Obama reassures Japan, other allies on China as Asia trip begins |
- 'Bridgegate' scandal threatens next World Trade Center tower
- UPDATE 4-Children's corpses reveal desperate attempts to escape Korean ferry