Moody’s upgrades Agnico Eagle’s rating to A3 on debt reduction
Investing.com - UBS downgraded BFI Finance Indonesia Tbk PT (BFIN:IJ) (OTC:PBIIF) from Buy to Sell on Friday, while significantly reducing its price target to IDR745.00 from IDR1,110.00.
The downgrade comes as UBS anticipates a substantial downturn in the automotive financing sector’s credit cycle that could result in a 12% earnings decline for BFI Finance in 2026, which the firm believes is not yet fully reflected in the stock’s market price.
UBS now forecasts a loan compound annual growth rate of only 2.5% for BFI Finance between 2025-27, alongside higher projected credit costs of 4.6% in 2025, 5.1% in 2026, and 4.0% in 2027, driven by both increased non-performing loan formation and larger losses on repossessed assets.
The investment bank has reduced its earnings estimates for BFI Finance by 8-29% for the 2025-27 period, positioning its forecast approximately 30% below the current market consensus.
Despite acknowledging that BFI Finance’s execution remains "best-in-class," UBS determined that the anticipated credit cycle challenges warranted the downgrade to a Sell rating.
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