Fitch lowers Sinar Mas Multifinance

Fitch said it downgraded PT Sinar Mas Multifinance’s national long-term rating to BBB+(idn) from A-(idn). The outlook is negative. The agency also cut the ratings on the company’s senior bond tranches to BBB+(idn) from A-(idn). The outlook is negative.

“The downgrade reflects our view that parent PT Sinar Mas Multiartha Tbk.’s (SMMA) ability to support its subsidiary has weakened as a result of the coronavirus pandemic. The negative outlook reflects our belief there is considerable risk SMMA’s financial profile may deteriorate beyond our expectations. The downgrade mirrors the negative rating action taken on sister company PT Bank Sinarmas Tbk. (BBB+(idn)/negative), whose rating contributes to our assessment of SMMA’s credit profile,” Fitch said in a press release.

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