Fitch Ratings Indonesia has published the National Long-Term Rating of 'AA(idn)' on PT JACCS Mitra Pinasthika Mustika Finance Indonesia's (JACCS MPMF, AA(idn)/Stable) first rupiah bond programme of up to IDR1.5 trillion, as well as to the first tranche of bonds issued under the programme.

The bonds are:

Series A: IDR100 billion of 4.75% bonds with a tenor of 370 days, due August 2023; and

Series B: IDR500 billion of 7.40% bonds with a tenor of three years, due August 2025.

'AA' National Long-Term Ratings denote expectations of a very low level of default risk relative to other issuers or obligations in the same country or monetary union. The default risk inherently differs only slightly from that of the country's highest rated issuers or obligations.

Key Rating Drivers

JACCS MPMF's bonds are rated at the same level as its National Long-Term Rating, in line with Fitch's criteria, as the bonds represent the company's direct, senior obligations and rank equally with all its other senior obligations.

The bonds will be fully secured against the company's receivables, but we do not view this as providing credit enhancement under our criteria for entities in Indonesia.

JACCS MPMF's National Long-Term Rating is derived from our expectation of a high probability of extraordinary support from its parent, JACCS Co., Ltd., if needed. For more details on JACCS MPMF's rating, see Fitch Affirms JACCS MPMF at 'AA(idn)'; Outlook Stable, published on 13 May 2022.

Rating Sensitivities

Factors that could, individually or collectively, lead to negative rating action/downgrade:

JACCS MPMF's bonds are rated at the same level as its National Long-Term Rating. A downgrade of JACCS MPMF's National Long-Term Rating would lead to similar action on the ratings on its bonds.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

An upgrade of JACCS MPMF's National Long-Term Rating would result in corresponding action on the ratings on its bonds.

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