TEXT-Fitch Rates BII Finance's MTNs 'AA+(idn)'

(The following was released by the rating agency)

JAKARTA/SEOUL/SINGAPORE, February 18 (Fitch) Fitch Ratings has assigned Indonesia-based PT BII Finance Center's (BIIF) IDR200bn medium-term notes (MTN) with a maturity of 36 months a National Long-Term 'AA+(idn)' rating The proceeds from the proposed issue will be used to support the company's business growth.

Rating Action Rationale

The MTNs are rated the same level as BIIF's National Long-Term rating of 'AA+(idn)', as they reflect direct, unconditional, unsecured and unsubordinated obligations of the company.

BIIF's ratings reflect Fitch's expectation of timely support from their majority shareholder, PT Bank Internasional Indonesia Tbk (BII; 'BBB'/'AAA(idn)'/Stable) and the ultimate parent, Malayan Banking Berhad (Maybank, 'A-'/Stable) in case of need. These ratings take into account their linkage with and strategic importance to Maybank in expanding their footprint in Indonesia's fast-growing consumer market. BII continues to support the funding of its subsidiaries through a joint financing scheme where BII assumes the bulk of the credit risk.

Rating Drivers and Sensitivities

Developments leading to a weakening of perceived support from its parent, such as meaningful changes to ownership or a weakening in its parent's financial ability, could result in a multi-notch downgrade on these companies. This is because the company's standalone credit profile is not sufficiently strong to support the current ratings.

BIIF is wholly owned by BII and focuses on Indonesia's car financing business.