ICRA Indonesia assigns a rating of [Idr]BBB+ with Stable Outlook to the Rp 100bn Medium Term Notes (MTN) of PT Tifa Finance. March 22, 2011
PT
ICRA Indonesia (ICRA Indonesia) has assigned an issue rating of [Idr]BBB+
(pronounced triple B plus) with a stable outlook to the proposed Rp 100bn
Medium Term Notes (MTN) of PT Tifa Finance (Tifa). The rating indicates
moderate credit quality relative to other domestic issuers and the rated
instrument carries higher than average credit risk. The rating factors in
Tifa’s ability to grow profitability while maintaining good asset quality; its
good banking relationships, which mitigate the disadvantage of its having
limited funding sources, being a non-listed company; and its comfortable
liquidity profile, arising out of a well-matched borrowing mix. The rating is
however constrained by the risks emanating from Tifa’s concentration on Kobelco
brands and its top 50 clients; the company’s moderately high leverage over the
medium term; and the relatively small size of its asset base compared with the
industry figure.
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