Fitch Publishes 'AA(idn)' Rating on Wahana Ottomitra Multiartha's Tranche III Bonds

Fitch Publishes 'AA(idn)' Rating on Wahana Ottomitra Multiartha's Tranche III Bonds.

Fitch Ratings Indonesia has published the 'AA(idn)' National Long-Term Rating on PT Wahana Ottomitra Multiartha Tbk's (WOMF; AA(idn)/Stable) tranche III 2023 bonds under its fourth bond programme, consisting of:

Series A: IDR221 billion of 5.95% 370-day bonds due April 2024

Series B: IDR779 billion of 7.00% three-year bonds due April 2026

'AA' National Long-Term Ratings denote expectations of a very low level of default risk relative to other issuers or obligations in the same country or monetary union. The default risk inherently differs only slightly from that of the country's highest rated issuers or obligations.

Key Rating Drivers

WOMF's bond programmes and underlying issuance are rated at the same level as its National Long-Term Rating, in accordance with Fitch's criteria, as the bonds represent the company's direct, senior obligations and rank equally with all its other senior obligations.

The bonds will be 60% secured against the company's receivables, but we do not view this as providing credit enhancement as per Fitch's criteria for entities in Indonesia.

WOMF's National Long-Term Rating is derived from our expectation of extraordinary support from its parent, PT Bank Maybank Indonesia Tbk (Maybank Indonesia, AAA(idn)/Stable), and its ultimate parent, Malayan Banking Berhad, if needed. For more details, see 'Fitch Upgrades Wahana Ottomitra Multiartha to 'AA(idn)'; Outlook Stable', published 16 December 2022.

Rating Sensitivities

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

A downgrade of WOMF's National Long-Term Rating would lead to similar action on the ratings of its senior bond programme and issuance.

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

An upgrade of WOMF's National Long-Term Rating would result in corresponding action on its senior bond programme and issuance ratings.

Date of Relevant Committee

15-Dec-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

WOMF's ratings are driven by Fitch's expectations of extraordinary support from its parent, Maybank Indonesia.

RATING ACTIONS

Entity / Debt

Rating

PT Wahana Ottomitra Multiartha Tbk

senior unsecured

Natl LT

AA(idn)

Publish

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VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com