Fitch cuts Arpeni Pratama Ocean Line notes to B

Fitch Ratings said it downgraded PT Arpeni Pratama Ocean Line Tbk's long-term foreign- and local-currency issuer default ratings to B+ from BB-, national long-term rating to A(idn) from A+(idn), along with the ratings on its $160 million senior unsecured notes due 2013 to B from BB- based on a recovery rating of RR5.

All ratings have been placed on Rating Watch negative pending the conclusion of two "newbuild" product tanker sales in March 2009.

The downgrades are based on an expectation that Arpeni's leverage will continue to remain higher than that appropriate for its previous ratings, Fitch said.

Arpeni has renewed contracts for intra-Indonesian coal transportation on similar terms as in 2008, Fitch said, and will benefit from full-year contributions from several new assets purchased in 2008.

But, concerns include its increased exposure to the international shipping business, which will suffer as a result of significantly weakened demand and freight rates, the agency said.

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