Fitch rates BULL notes B+

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of B+ to PT Buana Lintas Lautan Tbk. (BULL).

The outlook is stable.

Fitch also said it assigned an expected B+ rating with a recovery rating of RR4 to the proposed dollar-denominated senior unsecured notes to be issued by BULL's wholly owned subsidiary, BULL Maritime Capital Pte. Ltd.

BULL was established in 2005 as a domestic shipping subsidiary of PT Berlian Laju Tanker Tbk., which faced financial difficulties in 2012, the agency explained.

The ratings are underpinned by a robust position in an industry protected from foreign competition by cabotage laws, a strong relationship with demand driver Pertamina and a high share of time-charter contracts, Fitch said.

The ratings are weighed down by a relatively small and old fleet, the agency said.

The proposed notes will be guaranteed by BULL and its operating subsidiaries representing more than 90% of consolidated EBITDA, Fitch said.

The proceeds will be used mainly for refinancing BULL's existing debt and funding additional capital expenditure, the agency said.

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