Fitch: Sinar Mas notes A-(idn)

Fitch Ratings said it assigned a national long-term rating of A-(idn) to PT Sinar Mas Multifinance's proposed medium-term notes of up to Rp 3 trillion with a maturity of three years.

The proceeds will be used to support the company's working capital requirements.

The proposed notes are rated at the same level as the company’s national long-term rating as they constitute the company's direct and unsubordinated senior obligations, Fitch said.

The national ratings are driven by an expectation of a moderate probability of extraordinary support for the company from its 99.99% shareholder, PT Sinar Mas Multiartha Tbk., if needed, the agency explained.

Sinar Mas Multifinance is a holding company in the Sinar Mas group that focuses on the integrated financial services sector, including banking, insurance and multi-finance, Fitch said.

However support for the company is limited as it is a subsidiary of low importance due to its small contribution to the group’s overall franchise compared with the insurance and banking affiliates, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.