Fitch Ratings has placed a BB- rating on SJM Holdings' (HKG:0880) proposed notes, according to a Monday release.

Subsidiary SJM International will issue the proposed senior unsecured notes, which SJM Holding will guarantee.

The notes will rank equally with the company's other senior unsecured borrowings at all times.

The company's volatile deleveraging effort contributes to a negative outlook, the rating agency said.

Fitch still believes the company's leverage metrics will reach the BB- threshold for the forecast period to 2027, although continued operational decline could prompt a negative rating action.