Fitch affirms Bangkok Aviation

Fitch Ratings said it affirmed Bangkok Aviation Fuel Services PCL's A-(tha) senior unsecured long-term rating and F2 short-term national rating.

The outlook is stable.

The ratings are based on the company's still-dominant position after the opening of the new international airport, Suvarnabhumi Airport, in September, Fitch said. Bangkok Aviation is the only fully integrated fuel service provider at the airport and has a 90% market share for into-plane services, the agency added. The ratings also are supported by the company's major shareholders being key users of aviation fuel services, the good track record of its senior management and the company's strong and stable cash flow generating capability.

On the other hand, Fitch said, the ratings take into account the company's high financial leverage, largely as a result of the new investment at the airport. The company's net debt-to-EBITDA ratio continued to weaken to 4.9x at the end of the first nine months of 2006 from 4.6x at the end of 2005 and 2.6x at the end of 2004, Fitch said.

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