WOM Finance on Rating Watch Negative
Fitch Ratings Indonesia has placed Wahana Ottomitra Multiartha Tbk’s (WOMF IJ, AA) on Rating Watch Negative (RWN), following its parent Bank Maybank Indonesia Tbk (BNII, AAA(idn)/Stable) that plans to sell its entire shares of 68.55% to investment holding company Reliance Capital Management. The transaction is expected to close in 1Q17. WOMF’s ratings currently stood at AA and is support-driven with an expectation of moderate support from its current parent company BNII. The RWN reflects Fitch’s expectation that WOMF’s rating post-sale is likely to decrease by multiple notches due to changes of new shareholders and weak intrinsic credit profile. However, Fitch will further assess the impact of new shareholder, Reliance Capital Management to WOMF business and credit profile post-acquisition.
