Fitch: Pan Brothers A(idn)

Fitch Ratings said it assigned a national long-term rating of A(idn) to PT Pan Brothers Tbk. with a stable outlook.

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

The company’s ratings are underpinned by its position as Indonesia's largest publicly listed garment manufacturer by capacity, its established relationships with global apparel brands and its contractual revenue visibility over a 12- to 18-month horizon, Fitch said.

The company’s growing expertise in apparel manufacturing and its ability to cater to a wide product range have attracted global apparel brands, which bring longstanding relationships, the agency explained.

The company's strengths are balanced by its limited bargaining power with top customers, Fitch said.

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