Jakarta, March 15, 2022
PT Pemeringkat Efek Indonesia (Pefindo) assigns idAA ratings for PT Perusahaan Pengelola Aset (Persero) (PPA) and Bond I/2020, as well as for MTN I in 2019. The outlook for the company’s ranking is stable.
Pefindo said that obligors with idAA ratings have little difference with the highest rating given and have a very strong ability to meet long-term financial commitments.
“The rating reflects the very strong support of the Indonesian government, its strong position as an asset management company, and strong capital,” Pefindo said in an official statement on Monday. (14/3).
However, rankings are limited by weak profitability. The rating could be raised if Pefindo sees the possibility of stronger support from the Indonesian government.
This should also be followed by an expansion of its role or contribution to the government and banking industry as a national asset management company, as well as moderate financial performance. Instead, ratings can be lowered if government support and commitments drop significantly.
“Ratings can also fall if the PPA experiences significant poaching in its financial indicators, without any indication of strong support from the Indonesian government,” Pefindo explained.
Established in 2004 through Government Regulation (PP) No. 10/2004 to manage the assets of the former National Bank Restructuring Agency (BPPN), PPA received a broader mandate through PP No. 61/2008 for not only managing ex-BPPN assets, but also managing SOE assets.
Then restructure and revitalize SOEs, provide asset management and financing services to third parties, and have a commercial business line.
In 2014, the mandate was expanded for business consulting services, asset management and development activities, including for the management of local government-owned and privately owned assets.