Moody’s gives B1 to Sritex notes

Moody's Investors Service said it assigned a definitive B1 rating to the proposed $150 million senior notes due 2024, issued by Golden Legacy Pte. Ltd. and unconditionally and irrevocably guaranteed by Sri Rejeki Isman Tbk. (Sritex, B1 stable).

Sritex will use all of the net proceeds to repay existing debt, including its $89.3 million senior unsecured notes due 2019 (B1), $30 million of medium-term notes due October 2017 and existing working capital loans.

The proposed notes will be equal in ranking with the existing $350 million notes due 2021 (B1).

"The successful completion of Sritex tender offer and notes issuance will extend its debt maturity profile, with the company's next major maturity of $350 million coming due only in 2021," Moody's vice president and senior analyst Brian Grieser said in a news release.

Moody’s said the B1 corporate family rating reflects Sritex’s: (a) Solid EBITDA margins, approaching 20%; (b) track record of revenue and earnings growth; (c) completion of its large, debt-funded capital spending program on time and on budget in 2016; (d) customer and geographic sales diversification; (e) debt-to-EBITDA of 4.2 times at Dec. 30; and (f) solid liquidity profile.

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