Fitch rates Jababeka notes B+

Fitch Ratings said it assigned an expected B+ rating to PT Kawasan Industri Jababeka Tbk.’s proposed dollar-denominated notes of up to $70 million with a recovery rating of RR4.

The notes will be issued by wholly owned subsidiary Jababeka International BV, Fitch said, and guaranteed by Kawasan Industri Jababeka and certain subsidiaries.

The new notes will be consolidated and form a single series with the $190 million 7˝% notes due in 2019.

The proceeds will be used to repay the remaining 2017 notes plus accrued interest and applicable redemption premium totaling $46.1 million, the agency said, and for general corporate purposes.

Kawasan Industri Jababeka’s financial profile will be unchanged and consistent with its ratings because the new notes will be used mainly for refinancing that will lower its cost of debt and extend debt maturity profile, Fitch said.

The ratings reflect the company’s strong interest coverage from the recurring income that comes from its 130-megawatt power plant, the agency said.

© 2015 Prospect News.
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