Fitch: Soechi Lines notes B+

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of B+ with a stable outlook to PT Soechi Lines Tbk.

Fitch also said it assigned an expected B+ rating to the $200 million senior unsecured notes to be issued by Soechi Capital BV and guaranteed by Soechi and its key subsidiaries.

The ratings reflect the age of the company’s fleet and small size, Fitch said.

The average age of Soechi’s fleet was about 17 years, compared with the typical useful life of 30 years for a ship, the agency said.

Older ships require higher maintenance expenses and are more prone to operational issues, Fitch added.

Soechi has about 15% share of Indonesia’s domestic tanker market by vessel charter transactions, the agency said. The market is quite fragmented with small players accounting for about 60% of the market, Fitch said.

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