Moody's eyes Sritex for downgrade

Moody's Investors Service said it placed Sri Rejeki Isman Tbk.'s (Sritex) ratings under review for downgrade.

This review includes its B1 corporate family rating and the B1 ratings on the $150 million senior unsecured notes due in 2024, issued by Golden Legacy Pte. Ltd. and guaranteed by Sritex and its subsidiaries; and the $225 million senior unsecured notes due in 2025, issued by Sritex and guaranteed by all its operating subsidiaries. The outlook has been changed to ratings under review from negative.

"The review reflects increased concerns regarding Sritex's ability to refinance its $350 million syndicated loan due January 2022 given its weak liquidity position," says Stephanie Cheong, a Moody's analyst, in a press release. "While we understand that Sritex has made progress in its refinancing efforts, we see a high risk that the company's funding access will continue to narrow amid a challenging funding environment."

The review will focus on the result of Sritex's talks with its lenders to extend the syndicated loan’s maturity, its access to funding and the presence of a concrete refinancing plan for any funding shortfall, the agency said.

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