Fitch Ratings has assigned Indonesia-based PT Sarana Multigriya Finansial's (SMF) issue of senior unsecured medium-term notes (MTNs) a national short-term rating of 'F1+(idn)'.

 

The 2013 MTNs of up to Rp 500 billion have a short-term maturity of 360 days. The proceeds from the proposed issue will be used to support the company's business growth.

 

The rating of the MTNs is aligned with SMF's national short-term 'F1+(idn)' rating as the notes represent unsecured and unsubordinated obligations of SMF.

 

“SMF's rating reflects Fitch's view of strong support from the central government ('BBB-'/Stable), in case of need, given its 100 percent state ownership and its policy role in developing a secondary mortgage market in Indonesia,” Fitch said in an official release.

 

“Downward rating pressure may arise from a downgrade in the sovereign's ratings or dilution in the government's propensity to provide financial support to SMF. However, Fitch views these as remote prospects in the near- to medium-term. The ratings may benefit from increased importance of SMF's policy role and evidence of more tangible forms of state support.”

 

SMF was established by the government of Indonesia in 2005 and is regulated and supervised by the Ministry of Finance.