KONTAN.CO.ID - JAKARTA. PT Chandra Sakti Utama Leasing (CSUL Finance) has received an idA rating from the Indonesian Securities Company (Pefindo) with a stable prospect.

Pefindo said obligors rated idA have a strong ability compared to other Indonesian obligors to meet their long-term financial commitments. However, the obligor's ability may be more easily affected by adverse changes in economic conditions and conditions compared to obligors with higher ratings.

"The rating reflects CSUL Finance's status as an important subsidiary of PT Tiara Marga Trakindo (Trakindo Group), its leverage ratio, and its strong presence in the heavy equipment market," said Pefindo, Friday (2/7).

constrained by high exposure to commodity-related businesses, poor asset quality, and moderate profitability. can be rated if the company can significantly strengthen its business position followed by continuous improvement of asset quality and level of profitability.

Companies need to demonstrate the ability to successfully diversify their business to mitigate the potential impact of commodity price volatility, particularly coal. could be under pressure if the rating's business position, asset quality and profitability deteriorate significantly.

The rating could also be lowered if there is a material decline due to support from the parent company. Pefindo estimates that the impact of the pandemic on CSUL Finance's credit profile will be relatively under control, given the company's competitiveness supported by its collaboration with Trakindo Group.

"Then what generates business synergies is not only with the parent but also with other affiliated companies and provides support in providing facility needs," he explained.

CSUL Finance also strengthens risk management in terms of underwriting and collection processes. This will reduce the potential for a business downturn during the pandemic. CSUL Finance is a finance company under the Trakindo Group with a focus on the corporate sector.

In addition to heavy equipment financing, the company is also engaged in car financing and factoring. Trakindo Group is one of the leading business groups in Indonesia with one of its lines of business as the official supplier of the Caterpillar brand, one of the major global heavy equipment brands.

As of March 31, 2021, the Company's shares are 100% owned by Tiara Marga Trakindo, of which 99.8% are owned directly and 0.2% indirectly through PT Mahadana Dasha Utama.