Rpt fitch rates mpm finance at a (idn); outlook stable

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(Repeat for additional subscribers)July 10 (The following statement was released by the rating agency)Fitch Ratings has given the National Long-Term 'A-(IDN)' to PT Mustika Pinasthika Partners Finance (Finance MEC). Stable prospects. National Long-term rating 'A-(idn)' reflects Fitch's expectation that MPM Finance would receive support from its parent company, PT Mitra Pinasthika Mustika Tbk (MPM; 'A (idn)' / Stable), if required. Rating considerations

Fitch's view of the magnitude of trend is based on the support of MPM Finance for strategic interests MPM MPM binis vehicle. This is supported with 100% ownership of the MPM MPM Finance (62.82% is owned by no Rent directly through the MPM, which is owned by MPM). As part of binis automotive MPM, MPM Finance has an important role to provide services car financing. MPM Finance net finance receivables rose to 2.9 trillion rupiah at the end March 2013 from 897 billion in 2008. Fitch estimates that the target MPM Finance to increase net financing receivables by 48% at the end of the year 2013 from 2.9 trillion at the end of December 2012 will face challenges economic slowdown particularly in the commodity sector, which is a key market for MPM Finance.

MPM Finance weakening asset quality with the ratio of non-performing loans (NPLs) rose to 2.3% of total net financing receivables at the end of March 2013 (2012: 1.7%). This is caused mainly by the deterioration in asset quality of debtors engaged in the commodities sector and a weaker team due to the large collection replacement labor, which has been addressed by hiring a team of billing The new and strengthened the billing process. However, the quality of assets expected to remain under pressure in the long short and medium due to the economic slowdown, Finance MEC growth target aggressive, and rising fuel costs. Fitch expects MPM Finance will continue to obtain financing in the form of loans of banks for car financing business growth and may also from the capital market. This is because the ratio of debt to capital (DER) of 4.3 x at the end of March 2013 (2012: 5,8 x) is still far below the limit which is set at 10x. Furthermore, MPM Finance will also be able to rely on capital support, if diperlukanm of MPM if the DER has internal limits exceeded. Additional capital of 100 billion rupiah in January 2013 reflects a commitment to support business growth MPM MPM Finance.

Finance MPM focus on financing a used car with high interest rates, resulting in higher profitability compared to competitors who only engaged in financing a new car. ratio net income to total assets and total equity amounted respectively 3.2% and 19.3% at the end of March 2013. Factors Fueling ratingDecrease in ownership or support or strategic interests MPM Finance the MPM will dapan put pressure on the ratings MPM Finance. However, Fitch sees this less likely in the future, given the important role in developing the Finance MPM MPM automotive business, especially in car financing.