Fitch Assigns ‘AAA(idn)’ Long-Term Rating to Bussan Auto Finance’s IDR 485 Billion Sukuk Issuance

Fitch Ratings (Fitch) Indonesia has assigned a National Long-Term Rating of ‘AAA(idn)’ to Bussan Auto Finance’s (BAF) proposed second-phase Sukuk issuance of up to IDR 485 billion under its first Sukuk programme with a three-year maturity. The Sukuk is rated the same as BAF’s National Long-Term Rating, as Fitch expects the issuance to represent BAF’s direct and senior obligations. Proceeds of the proposed Sukuk will support BAF’s working capital, according to Fitch.

BAF is a captive financing company that finances sales of Yamaha motorcycles in Indonesia. Fitch’s rating reflects the moderate potential of robust support from BAF’s parent company, Japan-based conglomerate Mi...