S&P rates Sri Rejiki notes BB-

Standard & Poor's said it assigned its BB- long-term corporate credit rating and axBB+ long-term Asean regional scale rating to PT Sri Rejeki Isman Tbk. (Sritex).

The outlook is stable.

At the same time, the agency assigned its BB- long-term issue rating to senior unsecured notes that the company guarantees. Golden Legacy Pte. Ltd., a special purpose vehicle, issued the notes.

"The rating on Sritex reflects the company's exposure to volatility in raw material prices, its debt-funded capacity expansion, and the highly competitive and fragmented global textile industry," S&P credit analyst Vishal Kulkarni said in a news release.

"Sritex's good operating efficiency, increasingly integrated textile operations, and high share (about 80% over the past three years) of revenue from existing customers temper these weaknesses."

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