October 20, 2015 / 3:00 AM / 2 years ago

Fitch Rates TAFS's Senior Bonds 'AAA(idn)/F1+(idn)'

(The following statement was released by the rating agency) JAKARTA, October 19 (Fitch) Fitch Ratings Indonesia has assigned National Ratings to Indonesia-based PT Toyota Astra Financial Services' (TAFS; AAA(idn)/Stable/F1+(idn)) proposed rupiah senior unsecured bonds as follows: - Bonds with maturity of three years assigned National Long-Term Rating of 'AAA(idn)'; and - Bonds with maturity of 370 days assigned National Short-Term Rating of 'F1+(idn)'. The bonds are the third tranche to be issued under TAFS's senior debt programme I of up to IDR4trn, to which Fitch has assigned National Long-Term and Short-Term Ratings of 'AAA(idn)' and 'F1+(idn)', respectively. The issue will be up to IDR1.706trn in size and the proceeds will be used to support the company's business growth. 'AAA' National Ratings denote the highest rating assigned by Fitch on its national rating scale for that country. This rating is assigned to issuers or obligations with the lowest expectation of default risk relative to all other issuers or obligations in the same country. 'F1' National Ratings indicate the strongest capacity for timely payment of financial commitments relative to other issuers or obligations in the same country. On Fitch's National Rating scale, this rating is assigned to the lowest default risk relative to others in the same country. Where the liquidity profile is particularly strong, a "+" is added to the assigned rating. KEY RATING DRIVERS The bond issues under the programme are rated at the same level as TAFS's National Ratings in accordance with Fitch criteria. TAFS's ratings reflect its strong support from Toyota Financial Services Corporation (TFSC), one of its two major shareholders. TFSC is a wholly owned subsidiary of Toyota Motor Corporation (TMC; A/Stable), one of the biggest automotive manufacturers in the world. As part of the Toyota group, TAFS benefits from product knowledge and funding support. The latter is derived from TMC's strong relationship with Japanese banks and Japanese government-backed financial institutions. TAFS also benefits from support from PT Astra International Tbk. (AI), the other major shareholder, particularly in dealership networks. AI is a leading car distributor in Indonesia and holds exclusive rights to sell Toyota vehicles in the country. RATING SENSITIVITIES Any changes in TAFS's National Ratings would affect the issue ratings. Any decline in TMC's ownership would exert downward pressure on TAFS's ratings as would a decline in support from both shareholders. However, Fitch sees this prospect as remote in the foreseeable future, given TAFS's strategic role in TMC's and AI's Toyota car financing business. There is no rating upside for TAFS as it is rated at the top end of the scale. Contacts: Primary Analyst Stefanus Yuniardhi Associate Director PT Fitch Ratings Indonesia Financial Institution DBS Bank Tower 24th Floor, Suite 2403 Jl. Prof. Dr. Satrio Kav 3-5 Jakarta, Indonesia 12940 +62 21 2988 6809 Committee Chairperson Jonathan Lee Senior Director +886 2 8175 7601 Date of Relevant Rating Committee: 12 December 2014 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(idn)' for National ratings in Indonesia. Specific letter grades are not therefore internationally comparable. Additional information is available at www.fitchratings.com. Applicable Criteria Global Non-Bank Financial Institutions Rating Criteria (pub. 28 Apr 2015) here National Scale Ratings Criteria (pub. 30 Oct 2013) here Additional Disclosures Solicitation Status here Endorsement Policy here ail=31 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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