Fitch Ratings has withdrawn Indonesia-based textile manufacturer PT Sri Rejeki Isman Tbk's (Sritex) Long-Term Issuer Default Rating (IDR) of 'RD'.

At the same time, Fitch Ratings Indonesia has withdrawn Sritex's National Long-Term Rating of 'RD(idn)'. Fitch has also withdrawn the ratings on Sritex's outstanding US dollar notes of 'C' with a Recovery Rating of 'RR4'.

'RD' National Ratings indicate an issuer that, in Fitch's opinion, has experienced an uncured payment default on a bond, loan or other material financial obligation but that has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and has not otherwise ceased business

Fitch is withdrawing the ratings as Sritex has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Sritex.

Key Rating Drivers

No longer relevant, as the ratings have been withdrawn.

RATING SENSITIVITIES

No longer relevant, as the ratings have been withdrawn

Best/Worst Case Rating Scenario

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

Issuer Profile

Sritex is an Indonesia-based textile manufacturer. Its business includes spinning, weaving, and finishing garments.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Sritex has an ESG Relevance Score of '4' for Management Strategy due to the impact of its strategy development and implementation in terms of working-capital management and funding, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors.

Sritex has an ESG Relevance Score of '4' for Governance Structure due to its concentrated ownership structure, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors.

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Following the withdrawal of ratings on Sritex, Fitch will no longer be providing the associated ESG Relevance Scores.

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