AMRT - AA(idn) with stable outlook by Fitch Ratings

AMRT - AA(idn) with stable outlook by Fitch Ratings Sumber Alfaria Trijaya AMRT) as one of Indonesia' biggest minimarket players, had just been rated AA(idn) with stable outlook from Fitch Ratings (FR), one of well-known international rating agencies. The Indonesian FR also stated that AA ratings nationally means that the default risks is very low by AMRT in the case of its bonds and/or other debt notes. Moreover, the ratings also reflects on AMRT' strong financials and business profile as the company would continue to grow in 2024-2025 on the back of its continuous store and warehouse expansions. Therefore, FR expects AMRT' Alfamart to open around 1,200 new stores in 2024 and 2025. In 2023, FR expects AMRT could record around 10% yoy revenue growth. Yet, for 2024-2025, FR took a conservative stance and it only expects AMRT to book a low to mid single digit yoy growth. Furthermore, FR also expects AMRT to book around 7% to 7.5% EBITDA margin in 2024-2025 due to lower costs from its outside Java' stores and could maintain a positive free cashflow for the next few years. (Source : Kontan)