Moody's affirms Gajah Tunggal

Moody's Investors Service said it affirmed its B2 senior unsecured rating for GT 2005 Bonds BV's $325 million bonds, guaranteed by PT Gajah Tunggal Tbk (GT), upon its successful closing and removed it from provisional status.

At the same time, Moody's said it assigned its B2 corporate family rating to the company.

The outlook is stable.

Moody's noted that the liquidity profile of the company will remain relatively weak in view of its small amount of committed backup facilities and its large planned capital expenditure.

However, Moody's said it takes some comfort that there will be no material debt maturities in the near future, with outstanding $96.5 million debts due for repayment in 2008 and 2009.

The agency said the B2 rating reflects dominant market positions within the rapidly expanding Indonesian tire market and a highly competitive cost base, which has facilitated export growth and further geographic diversity of sales.

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