Fitch rates Surya Artha Nusantara bond AA(idn)

Fitch Ratings said it assigned an AA(idn) rating to PT Surya Artha Nusantara Finance’s proposed senior unsecured bond.

The bond, which is the second tranche to be issued this year under the company’s bond program, will have maturity of three years.

The bond issue will be up to Rp 1 trillion in size and the proceeds will be used to support the company’s business growth, the agency said.

The ratings reflect expectations of very low default risk relative to other issuers or obligations in the same country, Fitch said.

The default risk inherent differs only slightly from that of the country’s highest rated issuers or obligations, the agency said.

The bonds are rated at the same level as the company’s national long-term and short-term ratings, Fitch said, because they constitute direct, unconditional, unsecured and senior obligations of the company and rank equally with all its other senior obligations.

The ratings consider the company’s strategic importance to the Astra Group as its financing arm, the agency said.

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