Fitch rates Federal International bonds AAA(idn)

Fitch Ratings said it assigned a national long-term rating of AAA(idn) to PT Federal International Finance's proposed senior unsecured bonds with a maturity of 36 months.

The agency also said it assigned a national short-term rating of F1+(idn) to the company’s bonds with a maturity of 370 days.

The proposed bond issuance, the fourth tranche under the company’s bond program, will be up to Rp 2.125 trillion in size with a maturity of up to three years.

The proceeds will be used mainly to support the company's growth, Fitch said.

The AAA national ratings denote the highest rating assigned by the agency on its national rating scale for that country, the agency noted.

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, Fitch explained.

The bonds are rated at the same level as the company’s national long-term and short-term ratings, the agency said.

The ratings reflect an expectation that Federal International will receive support from parent, PT Astra International Tbk., in time of need, Fitch said.

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