Moody's downgrades Sritex

Moody's Investors Service said it dropped Sri Rejeki Isman Tbk.'s (Sritex) corporate family rating to Ca from B3.

Moody's also slashed to Ca from B3 the ratings on the $150 million of backed senior unsecured notes due in 2024, issued by Golden Legacy Pte. Ltd. that Sritex and its subsidiaries guarantee, and Sritex’s $225 million of senior unsecured notes due in 2025 guaranteed by all of its operating subsidiaries.

The agency also changed the outlook to negative from under review. This rating action concludes the review for downgrade started on March 22, Moody’s said.

The rating action follows Sritex's April 3 announcement that several of its bank facilities have been materially reduced and that the company hired advisors for its debt restructuring process, Moody’s said.

"Today's rating action reflects the significant uncertainties over the sustainability of Sritex's current capital structure and the risk that Sritex's highly challenged liquidity situation could result in a near term acceleration of payments relating to the company's obligations," said Stephanie Cheong, a Moody's analyst and lead analyst for Sritex, in a press release.

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