JAKARTA. Pemeringkat Efek Indonesia (Pefindo) has upgraded the rating of PT Mandala Multifinance Tbk (MFIN) or Mandala Finance to “idAAA” with “stable” prospect, as well as “idAAA” and “idAAA(sy)” ratings for currently existing bond and sukuk.

This rating upgrade takes place after the realisation of the acquisition of Mandala Finance by MUFG Bank Ltd and PT Adira Dinamika Multifinance Tbk (ADMF) or Adira Finance. In addition, MUFG Bank and Adira Finance have assigned its representatives in the board of management of Mandala Finance.

In regard to this acquisition, Pefindo deems Mandala Finance of being able to gain high financial flexibility. It will further drive funding diversification of the company with a more competitive fund source.

Furthermore, Mandala Finance’s rating upgrade reflects its quite solid standalone credit profile and profitability. On the other hand, however, the company’s performance is still restricted due to moderate asset quality.

This may allow Pefindo to lower MFIN’s rating, once MUFG Bank’s support is diminishing.

According to IDNFinancials data, as of now, 70.6% of Mandala Finance is under the control of MUFG Bank. Adira Finance also claims ownership of 10%, while public investors have 19.4% of the shares. (KR/ZH)