RPT-Affirmations Fitch Rating 4 Astra Financing Subsidiary

Thu Jan 16, 2014 3:36am EST

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Jan 16 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has affirmed the National Long-Term rating of four subsidiary PT Astra International Tbk (AI) in the field of financial services as follows:

- PT Astra Federal International Finance (ASF), affirmed at 'AAA (idn)'

- PT Federal International Finance (FIF), affirmed in 'AAA (idn)'

- PT Surya Artha Nusantara Finance (SANF), affirmed in 'AA(idn)'

- PT Toyota Astra Financial Services (TAFS), affirmed in 'AAA(idn)'

A complete list of ratings is available at the end of this report . National ranking in the category of ' AAA ' denotes the highest rank Fitch on national rating scale for Indonesia . this ranking provided to an issuer or debt securities with the expectation of default risk the lowest relative to other issuers or securities in Indonesia.

National ranking in the category of ' AA ' indicates the expectation would risk failure very low pay relative to other issuers or securities in Indonesia. Credit risk is only slightly different from issuers or debt securities that are rated the highest in Indonesia . rating National ' F1 ' indicates the capacity to pay proper financial commitments The most powerful time relative to other issuers or securities in Indonesia.

National rating scale of Fitch , the ratings given to risk lowest default relative to the rest of Indonesia . if the profile strong liquidity specifically , the sign " + " is added to the ranks given.

ADVISORY RANKING

Affirmations ratings ASF, FIF and SANF reflects Fitch's expectation that all three The company will continue to receive strong support and commitment of AI as the majority shareholder. AI is the biggest company in Indonesia based on market capitalization and dominate the field of automotive, finance, agribusiness, heavy equipment and information technology. AI majority shares are owned by Jardine Cycle & Carriage Ltd, which is part of the Jardine Matheson Group.

ASF and FIF both fully owned by AI and contribute to the significant terhadao Astra Group in support of the development of the car assembly and AI motors and distribution business in Indonesia. ASF provides financing services AI cars for sale, while the FIF provides financing services to purchase of Honda motorcycle brand manufactured by Astra Honda Motor, which a 50-50 joint venture between AI and Honda Motor Company Ltd. ('A' / Stable).

In Fitch's view, PT Bank Permata Tbk plans to acquire 25% stake ASF will not have an impact on the strong relationship ASF and AI. AI will remains the majority shareholder in ASF after the transaction runs. Therefore, Fitch expects the importance of the role of ASF on the business AI core in the automotive field will not change. 89.12% stake in PT Bank Permata 50-50 joint venture owned by AI and Standard Chartered Bank (SCB; 'AA-' / Stable).

Rating SANF mencerrninkan strategic significance for the Astra Group. SANF providing financing services to companies that buy heavy equipment of PT United Tractors Tbk, which is a subsidiary company engaged in the field of AI heavy equipment. However, SANF strategic importance to AI, in Fitch's view, is not as strong as ASF and FIF. Stable Outlook reflects Fitch's expectations that the AI will continue to provide support to the ASF, FIF and SANF when needed.

TAFS ratings affirmation reflects strong support from one of the holders shares of Toyota Financial Services Corporation (TFSC). TFSC is a child wholly owned by Toyota Motor Corporation (TMC; 'A' / Stable), one of the largest automotive manufacturers in the world. As part of the Toyota Group, TAFS benefit in the form of knowledge of the products and support funding, funding support is obtained of a strong relationship between the TMC with several Japanese banks and institutions financially supported by the Japanese government.

TAFS also won support from other major shareholders, Astra International (AI), especially in the dealer network. AI is the market leader in car distribution in Indonesia and the holder exclusive rights to the sales of Toyota in the country. Stable Outlook reflects Fitch's expectation that Toyota and AI will continue to provide support to TAFS when needed.

Fitch expects ASF, FIF and the TAFS will be able to maintain profitability adequate in the near and medium term, despite pressure from the cost funding of high and slow economic growth in Indonesia. height provision for bad loans will support the company to cover the cost of credit through the cycle economies. Asset quality is expected to be stay awake because the company will maintain strict lending criteria and the AI will continue to monitor the risk manajamen its subsidiaries.

Fitch assesses the increase in credit costs resulting slowdown continues continues in the commodity sector will depress profitability SANF. However, the quality SANF assets will remain intact because of the high tingakt backup.

FACTORS RANK MOVER - ISSUER RATINGS

The fall in the contribution ASF, FIF and SANF the AI will have a negative impact the rank-ranking. The significant reduction in terms of ownership by AI and AI decreased performance or support of AI will be able to provide pressure on the ratings ASF, FIF and SANF, although Fitch meilhat this is unlikely in the foreseeable future, the importance of ASF to meilhat AI car's core business, the core business of motor FIF AI and Astra Honda Motor and heavy equipment business SANF against AI.

Reduced TMC ownership and support of both shareholders will put pressure on the ratings TAFS. However, Fitch does not view this is imminent given the strategic role in business financing TAFS TMC and AI cars.

There is no potential increase in ratings given rank ASF, FIF and TAFS has are in the highest ranking scale. For SANF, a significant increase over strategic interests are reflected against AI AI kepemilkian larger, the same name or an increased contribution to the AI SANF significantly positive action can produce a ranking.

CONSIDERATION OF RANKING FACTORS AND RANK-RANK DRIVE LETTER DEBT

Bonds and bond ongoing program of four subsidiary companies rated the same as the National Long-Term rating and ranking National Short-term company. at 'AAA (idn)' reflects Fitch's view that bonds are direct obligations of the company, not a debt subrodinasi, unconditional, unsecured, and from the company.

Here is the complete list of rankings:

ASF

Long-Term National Rating affirmed at 'AAA (idn)'; Outlook Stable

Short-Term National Rating affirmed at 'F1 + (idn)'

Senior Sustainable Euro Bonds Program II in 2013 affirmed at 'AAA (idn)' / 'F1 + (idn)'

Senior Programme Sustainable Bond Euro II phase II affirmed in 2013 'AAA (idn)' / 'F1 + (idn)'

FIF

Long-Term National Rating affirmed at 'AAA (idn)'; Outlook Stable

Short-Term National Rating affirmed at 'F1 + (idn)'

Senior Sustainable Euro Bonds program I 2012 is affirmed in 'AAA (idn)' / 'F1 + (idn)'

Senior Sustainable Euro Bonds program I phase II affirmed in 2013 'AAA (idn)' / 'F1 + (idn)'

SANF

Long-Term National Rating affirmed at 'AA (idn)'; Outlook Stable

Short-Term National Rating affirmed at 'F1 + (idn)'

Senior Bonds Rupiah IIdiafirmasi at 'AA (idn)'

Euro Medium Term Debt IV affirmed at 'AA (idn)' / 'F1 + (idn)'

Senior Sustainable Euro Bonds program I 2013 is affirmed in 'AA (idn)' / 'F1 + (idn)'

Senior Sustainable Euro Bonds program first stage I2013 is affirmed in 'AA (idn)' / 'F1 + (idn)'

TAFS

Long-Term National Rating affirmed at 'AAA (idn)'; Outlook Stable

Short-Term National Rating affirmed at 'F1 + (idn)'

Senior Sustainable Euro Bonds program I affirmed in 2014 'AAA (idn)' / 'F1 + (idn)'

Senior Sustainable Euro Bonds program I 2014diafirmasi in phase I 'AAA (idn)' / 'F1 + (idn)'

Senior Bonds in Euro IIIdiafirmasi t 'AAA (idn)' / 'F1 + (idn)'

Senior Bonds Rupiah IIdiafirmasi at 'AAA (idn)'

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