Fitch rates Sritex notes BB-

Fitch Ratings said it assigned a final rating of BB- to PT Sri Rejeki Isman Tbk.’s (Sritex) $350 million 8¼% unsecured notes due in 2021.

The final rating is in line with the expected rating assigned in May and follows the receipt of final documents conforming to information already received, Fitch said.

The notes have been issued by Sritex’s wholly owned subsidiary, Golden Legacy Pte Ltd. and are guaranteed by Sritex and its operating subsidiaries, the agency said.

Sritex will use $180 million of the proceeds to repay its $270 million 9% unsecured notes due in 2019 following a tender offer for them and the balance to refinance other working capital debt and for general purposes, Fitch said.

The agency said it expects the new issue to be neutral for the company’s leverage and Sritex will be able to maintain its net debt-to-EBITDA ratio to less than 3x over the medium term.

The company has relatively small operating scale compared with its international peers in the competitive and fragmented textile sector, Fitch said.

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