Moody's assigns Sri Rejeki notes B1

Moody's Investors Service said it assigned a definitive B1 corporate family rating to PT Sri Rejeki Isman Tbk.

The outlook is stable.

Concurrently, the agency assigned a definitive B1 rating to the $200 million senior unsecured notes due 2019 issued by Sri Rejeki's wholly owned subsidiary, Golden Legacy Pte. Ltd. The notes are guaranteed by Sri Rejeki and its subsidiary guarantor, PT Sinar Pantja Djaja.

Proceeds from the notes issuance were primarily used to repay existing debt and establish a debt service accrual account.

The notes issuance is roughly $100 million smaller than initially contemplated when the agency assigned the provisional B1 ratings and, as such, leverage will be roughly 3.0x compared to its previous expectation of 4.5x at close. However, Moody's expects debt levels to increase in 2014-2015 as Sri Rejeki executes its capital spending plans which will likely result in a modest increase in leverage.

Moody's anticipates that the company will likely rely on its roughly $150 million working capital credit facilities over the next two years in the range of $50 million to $75 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.