Fitch lifts BCA Finance, bond AAA(idn)

Fitch Ratings said it upgraded PT BCA Finance's national long-term rating to AAA(idn) from AA+(idn), along with its rupiah-denominated senior bond III/2010, IV/2011, tranche I/2012 bonds and bond issuance program I/2012 to AAA(idn) from AA+(idn).

The agency also said it affirmed its national short-term rating at F1+(idn) and subordinated bond I/2010 at AA-(idn).

Fitch also said it assigned a national long-term rating of AAA(idn) and national short-term rating of F1+(idn) to BCA Finance's proposed senior bond tranche II 2013 of up to Rp 1.8 trillion with a maturity of up to four years.

The proceeds from the proposed issue will be used to support the company's business growth.

The outlook is stable.

The upgrades reflect support from and linkage with its shareholder, PT Bank Central Asia Tbk., Fitch said.

The ratings reflect an expectation of a strong probability of parent support in times of need, the agency said.

The ratings also consider the company's increasing strategic importance to its parent as a growing core subsidiary to support BCA Finance's business expansion in Indonesia's fast-growing consumer financing market, the agency said, as well as expected improvements in the regulatory framework for multi-finance companies.

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