Mostly Positive Affirmation on Rating Front; Pertamina Affirmed at Baa3 Eventually
On rating front, Indonesia Eximbank and Astra Sedaya Finance (ASF) were affirmed at AAA/Stable by Pemeringkat Efek Indonesia (Pefindo). Both companies are benefited from strong their majority shareholders’ support. Besides that, the AAA rating on Eximbank also reflects their strong market share in export finance as well as solid liquidity profile. As for ASF, their high level of credit rating is supported by business position as strategically important unit for Astra Group and their strong market share in car financing and sound asset quality. Meanwhile in the international rating front, Moody’s has finally concluded the rating reviews on 6 national oil and gas company in South and Southeast Asia after nearly two months of assessment.
Primary Activity Boosted by Multifinance Bonds Offer
Primary Market Less Active During The Week
Indonesia Primary Market Getting Busier
Corporate Bonds Sales Shadowed by Rising Govvies Yield
Indonesia Government Sold IDR6.32Trn at Sukuk Auction
Among those 6 companies are Pertamina whose credit rating affirmed at Baa3. The affirmation was due to the lower impact of low oil prices on the company’s cash flows, and the improving contribution of the company’s downstream business. Noting that only one third of EBITDA stemming from downstream business and thus offsetting Pertamina’s earning during low oil prices environment. Elsewhere, Fitch has raised Indosat Ooredoo (ISAT:IJ) long term local currency issuer default rating (LC IDR) to BBB+ from BBB on the bank of strong linkage with its parent company Qatar based Ooredoo.
