Fitch affirms Bangkok Aviation Fuel

Fitch Ratings said it affirmed Thailand's Bangkok Aviation Fuel Services Public Co. Ltd.'s (BAFS) senior unsecured long- and short-term national ratings of A-(tha) and F2(tha), respectively.

The outlook is stable.

The ratings of BAFS are based on its monopoly position as the sole operator of aviation fuel services at Bangkok International Airport and its securing of long-term sale contracts to major customers which has resulted in stable cash flow generation, the agency said.

While it will lose its monopoly position after the opening of the new international airport, Suvarnabhumi Airport, BAFS should still remain the dominant provider of aviation fuel services, Fitch noted.

This is expected to support strong earnings growth over the medium term due to the new airport's increased capacity and the planned service fee hike, although the opening has been delayed to mid-2006, Fitch said.

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