Fitch Publishes 'AAA(idn)' Rating on Federal International Finance's Programme V Tranche IV Bonds

Fitch Ratings Indonesia has published the 'AAA(idn)' rating on PT Federal International Finance's (FIF; BBB/AAA(idn)/Stable) fourth tranche of bonds under its fifth rupiah bond programme.

The issuance consists of the following series:

Series A: IDR500,760 million 5.0% bonds due November 2023

Series B: IDR676,240 million 6.8% bonds due October 2025

'AAA' National Long-Term Ratings denote the highest rating assigned by the agency in its National Rating scale for that country. This rating is assigned to issuers or obligations with the lowest expectation of default risk relative to all other issuers or obligations in the same country or monetary union.

Key Rating Drivers

The unsecured bonds are rated at the same level as FIF's National Long-Term Rating in accordance with Fitch's criteria, as they represent FIF's direct and unsecured obligations and rank pari passu with its other obligations in the same debt class.

FIF's National Long-Term Rating is driven by our expectations of a high probability of extraordinary support from its parent, PT Astra International Tbk (AI), if needed. For details, please refer to Fitch Affirms Federal International Finance at 'BBB' and 'AAA(idn)'; Outlook Stable, published 28 September 2022.

Rating Sensitivities

Factors that could, individually or collectively, lead to negative rating action/downgrade:

A downgrade in FIF's National Long-Term Rating would result in a corresponding downgrade in its rupiah bond programme and issue ratings.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

There is no upside to the ratings of the rupiah bond programme and issuance as they are at the highest point on the national scale.

Date of Relevant Committee

27 September 2022

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

Public Ratings with Credit Linkage to other ratings

FIF's ratings reflect high probability of extraordinary support from its parent, AI, if needed.

ESG Considerations

Not relevant for National Ratings.