Fitch affirms Bangkok Aviation Fuel

Fitch Ratings Ltd. said it affirmed Bangkok Aviation Fuel Services PCL's national ratings at long-term A-(tha) and short-term F2(tha) following the company's renegotiation of a long-term loan amortization schedule due to the delay in the opening of the new airport to mid-2006.

The outlook is stable.

The company is in negotiation with Bangkok Bank plc, one of its main creditors, to extend the principal repayment schedule for a Thai baht 2 billion eight-year loan on the back of the delay in the commercial opening of the new international airport, Suvarnabhumi Airport. Under the current loan agreement, Bangkok Aviation Fuel's principal repayment of the loan is quarterly installments from March 2007 to December 2013.

Bangkok Aviation Fuel has now proposed to the bank quarterly installments from March 2008 to December 2014. Bangkok Aviation Fuel's senior management has indicated that the extension of period to start principal repayment would not constitute any breach of the company's existing loan agreements, the agency said.

The company expects to reach agreement with Bangkok Bank shortly. In the event that the extension is not agreed, Fitch said the company should still be able to meet the existing repayment schedule, although Bangkok Aviation Fuel may need to reduce its dividend payments.

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