Fitch rates Arpeni Pratama Ocean Line notes BB-

Fitch Ratings said it assigned a final BB- rating to the $160 million guaranteed notes due 2013 issued by Arpeni Pratama Ocean Line Investment BV and guaranteed by Indonesia-based PT Arpeni Pratama Ocean Line Tbk. and its subsidiaries. The notes are secured by first-priority pledges of capital stock of Arpeni's equity interest in most of its subsidiaries.

The agency 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, and 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 its high level of customer concentration and the aggressive fleet addition program the company began in 2005 - the company plans to spend an additional Rp 1.3 trillion on the program in 2006. However, Fitch said that risks associated with such expansions are somewhat mitigated by the company's policy of acquiring new vessels only when visibility for new contract orders is high.

Net debt to EBITDA was 2.6x in 2005.

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