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Fitch revises BFIN's outlook to negative due to COVID-19

24 April 2020 13:56

JAKARTA. Fitch Ratings Indonesia downgraded the outlook for the long-term national rating of PT BFI Finance Indonesia Tbk (BFIN) from 'A + (idn)' Stable to 'A + (idn)' Negative, due to the challenges faced by the company during the coronavirus (COVID-19) pandemic.

For short-term national ranking, Fitch gave BFIN an 'F1 (idn)' rating. "We expect a significant short-term weakening of the performance of companies in this sector, including BFI," Fitch explained in his official statement.

Fitch also notes that the quality of BFIN's assets also has the potential to deteriorate significantly in the near future, since debtors' decreasing income will affect their credit payment capacity.

Nevertheless, Fitch said that BFIN would have better profitability compared to other companies in the financing sector. This is reflected by the company's financial margin which is higher than its peers. (KR/AR)

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