JAKARTA. Fitch Ratings, an international credit rating agency, has affirmed the long-term issuer credit rating of PT Sri Rejeki Isman Tbk (SRIL) or known as Sritex, at 'BB-' and 'A + (idn) for its long-term national rating with a stable outlook.
In its official statement, Fitch assesses that Sritex's current performance is quite strong. This was driven by an increase in operational scale, successful operational integration, and improved efficiency in its two subsidiaries acquired in 2018.
A number of these factors are considered to support Sritex's profit margin. On the other hand, the company's sales grew positively above expectations.
In other words, according to Fitch, Sritex's profitability strengthened. Sritex's debt to EBITDA ratio has also been reduced to 2.9x by the end of September 2019, from 3.2x at the end of 2018.
Fitch explained, Sritex's rating could still be upgraded if the company could maintain revenue growth of around 4% -9% per year, EBITDA margin of around 19% -20%, and the ratio of CapEx to revenue of around 4% over the next 3 years. (KR/AR)