Fitch rates Maybank Indonesia bond AA+(idn)

Fitch Ratings said it assigned a national long-term rating of AA+(idn) to PT Maybank Indonesia Finance's proposed rupiah senior unsecured bond tranche III 2016 of up to Rp 1.5 trillion.

The bonds, which will be issued under the bank’s bond program, will have a maturity of up to five years.

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

The AA national ratings denote expectations of low default risk relative to other issuers or obligations in the same country, the agency said.

However, changes in circumstances or economic conditions may affect the capacity for timely repayment to a greater degree than is the case for financial commitments denoted by a higher rated category, Fitch said.

The bonds are rated at the same level as Maybank's national long-term ratings, the agency said.

The ratings are driven by a view that the bank’s parent, PT Bank Maybank Indonesia Tbk., would provide timely support to its subsidiary, if needed, Fitch said.

The bank plays an important role in expanding its parent's consumer business in Indonesia, the agency said.

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