Fitch lowers Soechi Lines view to negative

Fitch Ratings said it revised the outlook on PT Soechi Lines Tbk. to negative from stable and affirmed the long-term issuer default rating at B+.

The agency also said it is simultaneously withdrawing the rating, as it is no longer considered to be relevant to its coverage because Soechi has no bonds outstanding.

The outlook revision considers a risk that Soechi's FFO-adjusted net leverage will remain higher due to a lack of cash flow visibility for its shipyard business, Fitch said.

Soechi's key shipping business is stable, but the shipyard segment has underperformed relative to expectations and has been a drag on the leverage profile, the agency explained.

The situation is compounded by a lack of new shipbuilding contracts, Fitch added.

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