RPT-Fitch BCA Finance affirmed at 'AAA (idn)'; Outlook Stable

Wed May 21, 2014 3:27am EDT

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May 21 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has affirmed the National Long-Term rating of PT BCA Finance (BCAF) at 'AAA (idn)'. Outlook is stable. A complete list of rankings is available at the end of this report.

Affirmation of the ratings BCAF reflect Fitch's assessment of the continued support of and relations with shareholders, PT Bank Central Asia Tbk (BCA; AAA (idn) '/ Stable).

AAA (idn)

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.

F1(idn)

National Rating 'F1' indicates the capacity to pay financial commitments The most powerful in a timely manner relative to other issuers or debt securities in Indonesia. National rating scale of Fitch, the ratings given the lowest default risk relative to the rest of Indonesia. If specific liquidity profile is strong, a "+" is added to the ratings given.

Activator Factor Rating - National Rating

The ratings reflect Fitch's expectation BCAF above magnitude likely to be the support of the parent company, if needed. rating also BCAF into account the role as a core subsidiary of the Bank in favor of BCA's business expansion in the Indonesian consumer finance market is growing rapidly as well as expectations for an improvement in the regulatory framework for corporate financing. With the single regulator for banks and finance companies can help ensure the same level of regulatory standards between banks and unit finance companies.

As an integral part of the Bank 's consumer business chain , holding BCAF important role in managing the entire loan portfolio BCA vehicle . Vehicle loan portfolio memyumbang significant amount of 33% of total consumer credit in 1Q14 . Support BCA realized in the form of use same name as the BCAF , providing funding and operational alignment such as the use of the Bank 's branch network . Referral business of the bank remained significant some 42 % of the total financing of BCAF in 2013. Outlook Stable reflects expectations that the Bank will continue to support BCAF , if needed . Strong financial support from the Bank will help to maintain BCAF competitiveness in the lending rate . Debt to equity ratio BCAF 3x maintained low in 1Q14 , despite the high credit growth . it is reflect a greater dependence of the scheme without -recourse joint - financing of the BCA , compared borrowing from the money market . asset quality BCAF expected to decline but will remain subdued in operating conditions more difficult .

Sensitivity Ranking - National Rating

Changes in Long-Term National Rating and Short Term company will affect the rankings bond. The decrease in ownership significantly, the performance or support of the BCA and the BCA will contribute BCAF can put pressure on the ratings. However, Fitch see The potential is small in the short term, due to the important role BCAF, as a core subsidiary, for BCA in developing business consumer finance. There are no ratings due to the potential increase in ratings was at the top level.

Sensitivity Ranking - Rating Debt

Senior bonds and continuing bonds rated at the same level the National Long-Term rating and the Short Term ratings company, because the bonds are direct, subordinated and is the company's senior unsecured obligations and rank equally with the obligations subordinated unsecured and not others. Any change in rank National Long Term and Short Term will affect the company's ranking The debentures.

Subordinated debt rated three levels below the national rankings Term Long BCAF to reflect the status of subordinated debt and are at the same level and no higher than similar securities of the Bank. Fitch assesses the risk of coupon deferral exist in all securities Lower Tier-2 published by BCAF, including features that do not have penanguhan diprospektusnya coupon payment. Fitch believes that if the bank in Indonesia are problematic and fall under "intensive supervision" by the Financial Services Authority (FSA), the bank along with the company its financing, will not be permitted to pay a coupon of Lower Tier 2, which is a form of non-performance risk.

A complete list of ratings is as follows:

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

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

Bond Programme affirmed at 'AAA (idn)'

Senior Rupiah Bond Tranche III/2014, affirmed at 'AAA (idn)' and 'F1 + (idn)'

Senior Rupiah Bond Tranche II/2013, affirmed at 'AAA (idn)' and 'F1 + (idn)'

Senior Rupiah Bond Tranche I/2012, affirmed at 'AAA (idn)'

Senior Rupiah Bond IV/2011, affirmed at 'AAA (idn)'

Subordinated Bond I/2010 affirmed at 'AA-(idn)'

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