Fitch affirms Aetra Air Jakarta

Fitch Ratings said it affirmed PT Aetra Air Jakarta's national long-term rating at A(idn), along with the A(idn) rating on its existing three tranches of Rp 614.5 billion senior unsecured notes due in 2011, 2013 and 2015.

The outlook remains stable.

The ratings continue to reflect Aetra's low exposure to competition as it has exclusive water service rights in the eastern part of Jakarta under a 25-year concession contract with Pam Jaya, which expires in 2023, Fitch said.

The company also benefits from a relatively stable cost structure mainly comprising labor and overhead costs, the agency said.

The ratings are constrained by uncertainties regarding the regulatory framework, Fitch said, and concentration risk of raw water supply from Jatiluhur reservoir.

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