Fitch affirms Fajar Surya

Fitch Ratings said it affirmed the B+ long-term foreign- and local-currency issuer default ratings with stable outlook and the BBB+ (idn) national long-term rating with positive outlook of PT Fajar Surya Wisesa Tbk, along with the B+ and the recovery rating of 4 on the $100 million notes due in 2011, issued by Fajar Paper Finance BV and guaranteed by Fajar.

The ratings have been affirmed even though Fajar's financial leverage, as measured by the net debt/EBITDA ratio, remained high at 6.3x in 2006, a level not anticipated when the ratings were initially assigned in October 2006, Fitch said.

Apart from financial leverage, the ratings also are constrained by Fajar's small scale and position as a price-taker for both its raw materials and end-products in a highly commoditized market, the agency said.

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