Moody’s rates Soechi CFR, notes B1

Moody's Investors Service said it assigned a provisional B1 provisional corporate family rating to PT Soechi Lines Tbk. and a provisional B1 rating to the proposed $200 million senior unsecured notes of Soechi Capital BV, a wholly owned subsidiary of Soechi Lines.

The outlook is stable.

Proceeds from the notes will be used to repay outstanding secured debt, acquire vessels, fund the interest service account and pay transaction fees.

The notes will be guaranteed by Soechi and substantially all of its subsidiaries on a senior unsecured basis.

"The (P)B1 CFR reflects the predictability of Soechi's revenues over the next 18-24 months, underpinned by long term time charter contracts on its existing fleet of 35 vessels at March 31, 2015, strong profitability margins and high barriers to competition due to favorable industry regulations, particularly the cabotage laws, which mandate the use of Indonesia-flagged vessels for domestic sea freight transportation" Moody’s vice president and senior analyst Brian Grieser said in a news release.

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