Fitch puts Mitra Pinasthika on positive watch

Fitch Ratings said it placed PT Mitra Pinasthika Mustika Finance's (MPMF) national long-term rating of A-(idn) and national short-term rating of F1(idn) on Rating Watch positive.

The positive watch follows news that majority shareholder, PT Mitra Pinasthika Mustika Tbk., plans to sell a 20% stake to minority shareholder, Jaccs Co. Ltd., Fitch explained.

Under the plan, Mitra Pinasthika Mustika will lower its stake in the company to 40%, while JACCS will increase its ownership to 60%, the agency said.

The ratings on MPMF are support-driven, reflecting an expectation of a moderate probability of extraordinary support from its parent company, if required, Fitch said.

The positive watch reflects the likelihood that MPMF's rating may benefit from extraordinary support from JACCS, the agency said.

Fitch said it does not expect MPMF's rating to be downgraded, considering its parent company’s continued interest in the subsidiary.

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