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Fitch Ratings upgrades PT Mitra Pinasthika Mustika Finance's rating to 'AA-(idn)'.

Jakarta: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, upgraded PT Mitra Pinasthika Mustika Finance's (MPMF) National Long-Term Rating to 'AA-(idn)' from 'A-(idn)' and its National Short-Term Rating to 'F1+(idn)' from 'F1(idn)'.

The sale has resulted in JACCS becoming the new majority shareholder of MPMF with a 60% stake, while MPM owns the remainder. The rating upgrade reflects Fitch's view of JACCS's greater ability to provide extraordinary support to MPMF, if required, than that previously factored into the rating when MPM was the majority shareholder.

The Rating Watch Positive, in place since 9 February 2017, has been resolved and the Outlook is Stable. The rating actions follow the sale of a 20% equity interest in MPMF by PT Mitra Pinasthika Mustika Tbk (MPM; BB-/Stable), an Indonesian integrated automotive company, to JACCS Co. Ltd., a Japan-based consumer finance company, earlier this year.

'AA' National Ratings denote expectations of very low default risk relative to other issuers or obligations in the same country. The default risk inherently differs slightly from that of the country's highest rated issuers or obligations.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Dec 27, 2017
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