(The following statement was released by the rating agency)

Feb 19 - Fitch Ratings has affirmed the National Long-Term PT Toyota Astra Financial Services' (TAFS) at 'AAA (idn)' with a Stable Outlook. At the same time Fitch also gave TAFS National Short-Term rating at 'F1 + (idn).

Fitch has also assigned a rating 'AAA (idn)' and 'F1 + (idn)' the proposal III senior bonds to be issued by the TAFS for a maximum of 1.5 trillion dollars with a maximum period of 4 (four) years. The result of this issuance will be used to support business growth.

Fitch also affirmed the ratings of senior II bonds issued in 2012 amounted to 1.3 trillion rupiah at 'AAA (idn).

consideration The ranking

TAFS rankings reflect the strong support of one majority shareholder, Toyota Financial Services Corporation (TFSC). TFSC is a wholly owned subsidiary of Toyota Motor Corporation (TMC; 'A / Stable'), which is one of the largest automotive manufacturers in the world. As part of the Toyota group, TAFS get support in the form of product knowledge and funding. Obtained funding support from a strong relationship between the TMC with some Japanese banks and financial institutions backed by the Japanese government.

TAFS also gained the support of other shareholders, Astra International (AI), especially in the dealer network. AI is the market leader in automobile distribution in Indonesia and the holder exclusive rights to sales of Toyota in the country.

Bonds to be issued TAFS rated the same as the company's National Long-Term rating at 'AAA (idn)' reflects Fitch's view that corporate bonds are direct obligations of, not conditional, unsecured, and is not a subordinated debt of the company.

Factors Fueling Rating

Reduced TMC ownership and support from both shareholders will put pressure on the rating TAFS. However, Fitch sees this will not happen in the near future given the strategic role in business financing TAFS car TMC and AI. There is no upside potential given the rank TAFS ratings have been ranked highest in the scale.

The ratio of debt to capital TAFS fell to 7.3x at the end of September 2012 from 8x at the end of December 2011 due to additional capital of 150 billion rupiah from both shareholders in the first quarter of 2012 to support the business growth of the company. TAFS receivable increased to 12.6 trillion rupiah at the end of September 2012 (2011: 11 trillion rupiah) and a relatively stable market share of 27% of the sales of Toyota cars on credit in 2012.

In Fitch's view, the finance company 'captive' that sells one brand and only focus on new automobile financing, TAFS level of profitability is lower than other consumer finance company engaged in the sale of new and used cars. Ratio of earnings to assets (ROA) and the capital (ROE) are respectively 2% and 21% in the third quarter of 2012. However, Fitch expects profitability TAFS will be able to improve in the medium term in line with the company's plans to enter the used car financing starting in March 2013.

TAFS asset quality is maintained with the NPL ratio remained stable at 0.4% at the end of September 2012. Fitch believes the pressure on asset quality will remain as business growth, especially outside Java. However, TAFS has a strict policy of financing and has reserves (reserve) sufficient for the anticipated increase in NPLs.

TAFS established by Toyota Financial Services Corporation to support the sales of Toyota cars in Indonesia. The company is owned by a group of Toyota and Astra with a portion of the same ownership.

(Bangalore Ratings Team, Hotline: +91 80 4135 5898 satish.kb@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: satish.kb.thomsonreuters.com@reuters.net)

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