...Most Ratings Resilient: During H115 the Indonesian rupiah fell by around 7.5% versus the US dollar, stoking concerns that corporate credit profiles may deteriorate in Indonesia. Fitch Ratings believes that the ratings on most of our internationally rated issuers are unlikely to be affected. This is largely due to financial hedges and/or compensating operational revenues in US dollars, and in the case of utilities tariff mechanisms that allow for exchange-rate fluctuations. Leverage Increase for 10: We examine the impact of 15% and 30% rupiah deprecation scenarios on both the balance sheet and cash flows of 19 Indonesian corporates. In particular, we focus on the potential change in leverage, as measured by adjusted net debt to operating EBITDAR and project the impact to range from an increase of 4.1 turns (negative impact) down to a decrease of 0.40 turns (positive impact). For 10 corporates the effect will be negative, there will be a neutral impact for five, and a positive impact for...
