PT.PEFINDO - Credit Rating Indonesia
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Rating Definitions & Outlook

PEFINDO's rating serves issuers, insurers, counterparties, intermediaries and investors in the Indonesian financial markets by providing both Debt Specific Ratings which apply to specific debt instruments, and Company Ratings which apply to companies or obligors. Indonesian obligors include all active borrowers, guarantors, insurers and other providers of credit enhancement domiciled in Indonesia, as well as any foreign obligor active in the Indonesian financial markets. PEFINDO ratings are characterized by the use of the "id" prefix to underline that the ratings are assigned within an Indonesian context.

A PEFINDO rating is not a recommendation to purchase, sell, or hold a specific debt security issued by a company, as it does not comment on market price or suitability for a particular investor. Ratings are based on current information furnished by the obligors or obtained by PEFINDO from other sources deemed reliable. PEFINDO does not perform an audit in connection with any rating, and may, on occasion, rely on unaudited financial information. Credit Ratings may be changed, suspended, or withdrawn as a result of material changes in a company's debt servicing capacity.

Company Rating
 
idAAA
 
An obligor rated idAAA has a superior capacity to meet its long-term financial commitments relative to that of other Indonesian obligors.
idAA
 
An obligor rated idAA differs from the highest rated obligors only to a small degree, and has a very strong capacity to meet its long-term financial commitments relative to that of other Indonesian obligors.
idA
 
An obligor rated idA indicates that, the obligor has a strong capacity to meet its long-term financial commitments relative to that of other Indonesian obligors. However, the obligor is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than higher-rated obligors.
idBBB
 
An obligor rated idBBB has an adequate capacity to meet its long-term financial commitments relative to that of other Indonesian obligors. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.
idBB  
An obligor rated idBB has a somewhat weak capacity to meet its long-term financial commitments relative to that of other Indonesian obligors. The obligor faces ongoing uncertainties or exposure to adverse business, financial or economic conditions which could result in an inadequate capacity on the part of the obligor to meet its financial commitments.
idB  
An obligor rated idB has a weak capacity to meet its long-term financial commitments relative to that of other Indonesian obligors. Adverse business, financial or economic conditions will likely impair the obligor’s capacity to meet its financial commitments.
idCCC  
An obligor rated idCCC is currently vulnerable and is dependent upon favorable business and financial conditions to meet its financial commitments.
idSD  
An obligor rated idSD ("Selective Default") has failed to pay one or more of its financial obligations, rated or unrated, when it came due. An "SD" rating is assigned when PEFINDO believes that the obligor has selectively defaulted on a specific issue or class of obligations but will continue to make timely payments on its other obligations.
idD  
The obligor is in default to meet its long-term financial commitments. The obligor’s has no capacity to meet its’s short-term financial commitments.
     
The ratings from idAA to idB may be modified by the addition of a plus (+) or minus (-) sign to show relative strength within the rating category.
     
     
Long-term and Medium-term Debt Paper Rating
     
idAAA  
A debt security rated idAAA has the highest rating assigned by PEFINDO. The obligor’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian obligors, is superior.
idAA  
A debt security rated idAA differs from the highest rated debt only to a small degree. The obligor’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian obligors, is very strong.
idA  
Debt security rated idA indicates that the obligor’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian obligors, is strong, however, the debt security is somewhat more susceptible to adverse effects of changes in circumstances and economic conditions than higher-rated debt.
idBBB  
Debt security rated idBBB denotes adequate protection parameters relative to other Indonesian debt securities. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity on the part of the obligor to its long-term financial commitments on the debt security.
idBB  
Debt security rated idBB denotes somewhat weak protection parameters relative to other Indonesian debt securities. The obligor’s capacity to meet its long-term financial commitments on the debt security is susceptible to major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
idB  
Debt security rated idB denotes weak protection parameters relative to other Indonesian debt securities. Although the obligor currently still has the capacity to meet its long-term financial commitments on the debt security, any adverse business, financial, or economic conditions would likely impair the capacity or willingness of the obligor to meet its long-term financial commitments on the debt security.
idCCC  
Debt security rated idCCC is currently vulnerable to non-payment, and is dependent upon favorable business and financial conditions for the obligor to meet its long-term financial commitments on the debt security.
idD  
Debt security is rated idD when it is in payment default, or default of a rated obligation occurs automatically upon the first occurance of non-payment of the obligation. An exception is warranted when an interest payment missed on the due date is made within the grace period, or whenever such a non-payment is subject to a bona fide commercial dispute.
     
The ratings from idAA to idB may be modified by the addition of a plus (+) or minus (-) sign to show relative strength within the rating category.
idSD rating is not applicable for instrument
     
     
Short-term Debt Paper Rating
     
idA1  
A short-term debt security rated idA1 has the highest rating category assigned by PEFINDO. The obligor’s capacity to meet its short-term commitments on the debt security, relative to other Indonesian obligors, is superior.
idA2  
A short-term debt rated idA2 is slightly more susceptible to adverse changes in circumstances and economic conditions than the highest rated debt. The obligor’s capacity to meet its short-term financila commitments on the debt security, relative to other Indonesian obligors, is strong.
idA3  
A short-term debt security rated idA3 denotes above average protection parameters relative to other short-term Indonesian debt securities.
  idA4  
A short-term debt security rated idA4 denotes adequate protection parameters. It is, however, more vulnerable to adverse effects of changes in circumstances than debt securities carrying higher rating categories.
idB  
A short-term debt security rated idB denotes significant vulnerability to adverse business, financial, or economic conditions regarding timely payment of interest of repayment of principal, relative to other short-term Indonesian debt securities.
idC  
A short-term debt security rated idC denotes doubtful capacity for payment.
idD  
A short-term debt security rated idD denotes payment default.
idSD rating is not applicable for instrument
     
     
 
Rating Outlook
   
       
 
Positive
  Ratings may be raised.
 
Negative
  Ratings may be lowered.
 
Stable
  Ratings are not likely to change.
 
Developing
  Ratings may be raised or lowered.
       

A PEFINDO Rating Outlook assesses the potential direction of an obligor’s long-term credit rating over the intermediate to longer term. In determining a Rating Outlook, consideration is given to any changes in the economic and/or fundamental business conditions. A Rating Outlook is not necessarily a precursor of a rating change or future Credit Watch.

Credit Watch is conducted if events occurred that materially could have positive, negative or developing impacts to the performances of an obligor’s long-term credit rating.

 
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