Fitch rates Jababeka notes B+

Fitch Ratings said it assigned a final B+ rating to PT Kawasan Industri Jababeka Tbk.’s $190 million 7½% notes due 2019 with a recovery rating of RR4.

The notes are issued by wholly owned subsidiary, Jababeka International BV, and guaranteed by Jababeka and certain subsidiaries, Fitch said.

The action follows the receipt of documents conforming to information already received. The final rating is in line with the expected rating assigned Sept. 1, Fitch said.

Jababeka recently announced that holders of 76.4% of its $175 million 11¾% 2017 notes have agreed to exchange their notes for the 2019 notes, the agency said.

The new funds and debt exchange will be used to for general corporate purposes, Fitch said.

The notes are rated at the same level as Jababeka’s senior unsecured debt rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, the agency said.

The rating reflects the company’s strong interest coverage from the recurring income that comes from its 130-megawatt power plant, Fitch said.

The ratings also consider its limited capital expenditure and improved liquidity, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.