Fitch Publishes 'AAA(idn)' Ratings on Astra Sedaya Finance's 6th Bond Programme & Tranche I Bonds

Fitch Ratings Indonesia has published the 'AAA(idn)' ratings on PT Astra Sedaya Finance's (ASF, BBB/AAA(idn)/Stable) sixth rupiah bond programme and the first tranche of bonds issued under the programme.

The programme is sized up to IDR12.0 trillion, and the first tranche of bonds consists of the following:

Series A: IDR527 billion 5.50% bonds due July 2024

Series B: IDR1,973 billion 6.00% bonds due July 2026

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

ASF's National Long-Term Rating is driven by our expectation of a high probability of extraordinary support from its parent, PT Astra International Tbk (AI), if needed. For more details, please see 'Fitch Affirms Astra Sedaya Finance's 'BBB'/'AAA(idn)' Ratings; Outlook Stable', published on 28 September 2022.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

A downgrade of ASF's National Long-Term Rating would result in corresponding action on 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

ASF's ratings reflect Fitch's belief of a high probability of extraordinary support from its parent, AI, if needed.