JAKARTA: PT Fitch Ratings Indonesia downgraded the rating of I/2009 bond and national long-term rating of PT Sinar Mitra Sepadan Finance (SMS Finance) to BBB(idn) from BBB+(idn).In a release today, Fitch Ratings Indonesia Director and Primary Analyst Stefanus Yuniardhi said that the rating downgrade reflected the company's declining asset quality as loan increased yet collection performance slipped.The declining asset quality was followed by the hike in cost of fund at the end of last year until the first quarter of 2011, which finally eroded profitability.Companys non-performing loan increased to 1.6% in 1Q/2011 from 0.8% at the end of 2009.In the research, Fitch assigned BBB (idn) (exp) on the companys plan to issue medium term notes worth IDR200 billion in the near future. SMS Finances President Rudyanto Somawihardjo stated the higher NPL due to teh transfer of motor business to its subsidiary PT Central Sentosa Finance, which is managed together with PT BCA Finance. Business diversion occurred at the end of last year. (T05/NOM)
Cek Berita dan Artikel yang lain di Google News dan WA Channel