(The following statement was released by the rating agency)
Oct 17 - Fitch Ratings gave a rating of ‘AA + (idn)’ on the proposed issuance of senior bonds of 2012 for a maximum of one (1) trillion dollars within a maximum period of 3 (three) years to be published by PT CIMB Niaga Auto Finance’s (CNAF) in Indonesia.
The results of these bonds will be used to support the business growth of the company.
The bonds are rated the same as the CNAF National Long-Term rating to reflect Fitch’s view on the corporate bond obligations that are direct, conditional, not guaranteed and is not subordinated debt.
Rating of CNAF reflects Fitch’s expectation would be strong support continuously from the majority shareholder, PT Bank CIMB Niaga Tbk (CIMB Niaga; ‘BBB’ / Stable) and its parent company, CIMB Group (CIMBG; flagship CIMB Bank Berhad are rated ‘BBB +’ / stable). Significant dilution of ownership, and / or the possibility of weakening the support of CIMB Niaga and CIMB Group will be able to put pressure on the rating CNAF. CNAF has been ranked highest on the scale, so there is no potential for an increase in the national ranking.
Founded in 1981, CNAF is owned by CIMB Niaga (99%) and focuses on the automobile finance business in Indonesia. CIMB Niaga is the fifth largest bank in Indonesia and majority owned by CIMB Group.