Fitch Revises BFI Finance’s Ratings Related To Eight Indonesian Financial Institutions on National Scale Recalibration

Fitch Ratings, Jakarta - 27 March 2019 - Fitch Ratings Indonesia has revised the National Long-Term Ratings of eight Indonesian financial institutions in accordance with the recalibration of the agency's Indonesian national rating scale. The recalibration is to better reflect changes in the relative creditworthiness among the country's issuers that have taken place since the upgrade of the sovereign rating in December 2017 and has resulted in rating revisions among financial institutions and non-financial corporate issuers. Revision ratings are used to modify ratings for reasons that are not related to credit quality in order to reflect changes in the national rating scale.

National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk. Indonesia's national scale ratings are denoted by the unique identifier '(idn)'. Fitch adds this identifier to reflect the unique nature of the Indonesian national scale. National scales are not comparable with Fitch's international rating scales or with other countries' national rating scales.

The agency has also reviewed the National Short-Term Ratings of the eight financial institutions and has downgraded PT BFI Finance Indonesia Tbk (BFI Finance) and its debt program to 'F1(idn)' from 'F1+(idn)' following the revision of its National Long-Term Rating to 'A+(idn)' from 'AA-(idn)'. Its National Short-Term Rating is at the lower of the two possible ratings under Fitch's rating correspondence table, reflecting our view that the company is dependent on wholesale funding sources, similar to other finance and leasing companies in Indonesia that are not allowed to accept deposits. The National Short-Term Ratings of the other seven issuers have been affirmed.

Fitch has taken corresponding ratings action on the financial institutions' national scale debt ratings, where assigned. Concurrently, the National Short-Term Ratings on the debt programs of PT Astra Sedaya Finance (ASF) and BFI Finance have been withdrawn as the companies do not intend to issue any short-term instruments from the programs.

Complete list of the BFI Finance’s ratings can be found below:

• National Long-Term Rating revised to 'A+(idn)' from 'AA-(idn)'; Outlook Stable
• National Short-Term Rating downgraded to 'F1(idn)' from 'F1+(idn)'
• National Long-Term Ratings on Obligasi Berkelanjutan IV revised to 'A+(idn)' from 'AA-(idn)'
• National Long-Term Ratings on Obligasi Berkelanjutan II Period III revised to ‘A+(idn)’ from ‘AA-(idn)’
• National Long-Term on Obligasi Berkelanjutan III Period I revised to ‘A+(idn)’ from ‘AA-(idn)’
• National Long-Term on Obligasi Berkelanjutan III Period II revised to ‘A+(idn)’ from ‘AA-(idn)’
• National Long-Term on Obligasi Berkelanjutan III Period III revised to ‘A+(idn)’ from ‘AA-(idn)’
• National Long-Term on Obligasi Berkelanjutan III Period IV revised to ‘A+(idn)’ from ‘AA-(idn)’
• National Long-Term on Obligasi Berkelanjutan IV Period I revised to ‘A+(idn)’ from ‘AA-(idn)’
• National Long-Term on Obligasi Berkelanjutan IV Period II revised to ‘A+(idn)’ from ‘AA-(idn)

Additional information is available at Fitchratings.