Bisnis.com, JAKARTA - Multifinance issuer PT Wahana Ottomitra Multiartha Tbk. (WOMF) or WOM Finance reports the annual rating results from PT Fitch Ratings Indonesia.

In the disclosure submitted to the Indonesian Stock Exchange (BEI) on Tuesday (27/2/2024), there were three WOM Finance annual ranking results for the period December 2023 to December 2024.

First, the long-term national rating is set at AA (idn) or no change with a stable outlook.

Second, the short-term national rating is set at F1+(idn) and there is no change. Third, the respective long-term national ratings for Sustainable Bonds IV WOM Finance Phase I, Phase II and Phase III are set at AA (idn) or there has been no change.

In the rating results letter from Fitch, it is stated that the national rating in the AA category indicates expectations of a very low risk of default, relative to other issuers or debt securities in Indonesia.

"Credit risk is only slightly different from issuers or debt securities that receive the highest ratings in Indonesia," was quoted as saying in the WOM Finance rating results letter.

Meanwhile, the 'F1' National Short-Term Rating indicates the strongest capacity for timely payment of financial commitments compared to other issuers or obligations in the same country.

Under the National Rating scale, the rating is assigned the lowest default risk compared to others in the same country or monetary union, with a very strong liquidity profile, a "+" is added to the assigned rating.

Meanwhile, throughout last year WOM Finance posted a net profit of IDR 236 billion. WOM Finance President Director Djaja Suryanto Sutandar said that the company's net profit increased 20% compared to the same period the previous year, namely IDR 198 billion.

Djaja revealed that the increase in WOM Finance's performance was driven by the increase in new financing distribution and operational cost efficiency that the company had successfully implemented.

The issuer codenamed WOMF recorded an increase in the distribution of new financing until the end of December 2023 amounting to IDR 5.8 trillion. The figure increased 28% annually (year-on-year/yoy).

The largest contribution was in multipurpose financing for MotorKu and MobilKu amounting to IDR 4.4 trillion, followed by financing for new motorbikes amounting to IDR 1.5 trillion.

"In the midst of industry challenges, WOM Finance has proven to have implemented the right strategy by developing digitalization and network expansion, so that it is able to pass 2023 with satisfactory results," said Djaja in a written statement, Friday (23/2/2024).