S&P rates Delta Merlin notes BB-

S&P said it assigned a BB- long-term preliminary issuer credit rating to PT Delta Merlin Dunia Textile.

The agency also said it assigned a BB- long-term preliminary issue rating to the company's proposed $300 million senior unsecured notes.

The rating on PT Delta Merlin reflects the creditworthiness of the broader PT Duniatex Group, S&P said.

The agency said it assesses the company as a core subsidiary with stronger stand-alone credit profile with a BB stand-alone credit profile rating.

Duniatex Group's higher leverage than Delta Merlin and its high level of short-term working capital debt constrains its credit profile, S&P said.

The agency said it strong operating performance and stable track record provides some support.

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