Fitch may downgrade Aetra Air Jakarta

Fitch Ratings said it placed PT Aetra Air Jakarta's (previously known as PT Thames Pam Jaya) A-(idn) national long-term rating on Rating Watch negative, along with the A-(idn) ratings on its three tranches Rp 614.5 billion senior unsecured notes due in 2011, 2013 and 2015.

The watch reflects concerns about a potential breach of the senior notes covenant, which requires Aetra to maintain its debt to equity ratio at below 3.0x, Fitch said. Although audited numbers are not yet available, Fitch said it estimates that December 2008's debt-to-equity ratio may be slightly above 3.0x.

Fitch said it expects to resolve the watch after the audited December 2008 balance sheet is available and when further guidance is available from the management on plans to remedy the situation.

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