RPT-Fitch Rates PT Sarana Multigriya Finansial's MTNs 'F1+(idn)'
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Dec 9 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned Indonesia-based PT Sarana Multigriya Finansial (Persero)'s (SMF; AA(idn)/Stable) issue of senior unsecured medium-term notes (MTNs) a National Short-Term Rating of 'F1+(idn)'.
The VI 2013 MTNs of up to IDR775bn have a maturity of 360 days. The proceeds from the proposed issue will be used to support the company's business growth. The rating of the MTNs is aligned with SMF's National Short-Term Rating of 'F1+(idn)' as the notes represent unsecured and unsubordinated obligations of SMF.
'F1' National Ratings indicate the strongest capacity for timely payment of financial commitments relative to other issuers or obligations in the same country. On Fitch's National Rating scale, this rating is assigned to the lowest default risk relative to others in the same country. Where the liquidity profile is particularly strong, a "+" is added to the assigned rating.
KEY RATING DRIVERS
SMF's rating reflects Fitch's view of strong support from the central government (BBB-/Stable), in case of need, given its 100% state ownership and its policy role in developing a secondary mortgage market in Indonesia.
Downward rating pressure may arise from a downgrade in the sovereign's ratings or dilution in the government's propensity to provide financial support to SMF. However, Fitch views these as remote prospects in the near- to medium-term. The ratings may benefit from increased importance of SMF's policy role and evidence of more tangible forms of state support.
SMF was established by the government of Indonesia in 2005 and is regulated and supervised by the Ministry of Finance.
The ratings of SMF are as follows:
-National Long-Term Rating: 'AA(idn)'; Outlook Stable
-National Short-Term Rating: 'F1+(idn)'
-Senior debt programme I/2011: 'AA(idn)'
-Senior unsecured bond tranche I/2011: 'AA(idn)'
-Senior unsecured bond tranche II/2012: 'AA(idn)'
-Medium-term notes V/2013: 'F1+(idn)'
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