The Rating of ADIRA Bond Dynamics Corporation and Multi Finance Tbk is Going Up to “idAAA”

The Rating of ADIRA Bond Dynamics Corporation and Multi Finance Tbk is Going Up to “idAAA”
24 Nov 2014


The credibility of Adira Finance as a number 1 finance company in Indonesia has been recognized by the large number of customers reaching 3.7 million people. This is more evidenced by the increased corporate credit rating of PT Adira Multi Finance Tbk (ADMF) given by PEFINDO which is a securities rating company. The increased rating happened to Bond II / 2013, Bond I / 2011, and the Series of D Bonds V / 2011, from “AA +” to “idAAA”. At the same time, PEFINDO also upgraded the ratings of Sustainable Sukuk I / 2013 from “AA + (sy)” to “idAAA (sy)”. The upgraded rating reflects on PEFINDO’s action in increasing the ratings of the primary company of ADMF which is PT Bank Danamon Indonesia Tbk (BDMN) from “AA +” to become “idAAA”. The prospect for the company’s corporate credit rating is considered “stable”.

Such a rating reflects a very strong synergy and mutually beneficial relationship between ADMF and BDMN, also the market share of the company is very strong in the automotive financing industry, and business portfolio that is well diversified. However, the ratings are constrained by pressure on growth and asset quality.

Established in 1990, ADMF is the biggest auto finance company in Indonesia. ADMF provides financial services for new and second-hand motor vehicles, both cars and motorcycles. On September 30, 2014, ADMF has 28 646 employees serving customers through 647 business service networks consisting of 198 branches, 336 offices, 98 kiosks, and 15 dealer outlets located in major cities in Indonesia. A total of 95% of the shares is owned by BDMN ADMF, 0.4% by Adira Insurance, and 4.6% by the public.