AMRT - Receives 'AA(idn)' Long-Term National Rating from Fitch Ratings Indonesia

AMRT - Receives 'AA(idn)' Long-Term National Rating from Fitch Ratings Indonesia Alfaria Trijaya (AMRT) has received a 'AA(idn)' Long-Term National Rating from Fitch Ratings Indonesia, with a 'AA' national rating indicating very low expectations for default risk compared to other issuers or bonds in the same country or monetary union. The default risk is only slightly different from that of issuers or bonds with the highest rating in the country. Furthermore, Alfamart is positioned for ongoing growth in 2024-2025, driven by expansions in both stores and warehouses. The rating is attributed to several factors: 1) sustainable store additions, with plans to construct three new warehouses in Central Java and Sulawesi in 2024, 2) potential growth beyond Jabodetabek, particularly outside the region, 3) stable margins, 4) lower leverage, 5) positive free cash flow (FCF) despite higher capital expenditures, and 6) a strong market position as the second-largest convenience store operator in Indonesia in terms of the number of stores. (Source: Emiten News)