Fitch rates Arpeni Pratama Ocean Line A+

Fitch Ratings said it assigned a national long-term rating of A+ to Indonesia-based PT Arpeni Pratama Ocean Line Tbk. and affirmed the company's BB- long-term foreign- and local-currency issuer default ratings and BB- $160 million notes due 2013.

The outlook is stable.

Fitch said Arpeni's ratings draw support from its long-term contract-oriented business model, which provides earnings visibility and insulates the company from volatile shipping cycles. The ratings also are supported by the company's position as the largest dry bulk operator and the second-largest shipping company in Indonesia.

Arpeni's ratings are constrained by the aggressive fleet addition program since 2005, with the company planning an additional capital expenditure of Rp 1.3 trillion in 2006, the agency said. Those risks are somewhat mitigated by the company's policy of acquiring new vessels only when visibility for new contract orders is high, Fitch said.

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