S&P cuts Berlian Laju Tanker

Standard & Poor's said it lowered the long-term corporate credit rating on PT Berlian Laju Tanker Tbk to B- from B and placed it on CreditWatch with negative implications, along with its foreign-currency issue rating to CCC from CCC+ on the $400 million senior unsecured notes due 2014, and the $125 million five-year convertible bonds due 2012 by BLT Finance BV, a wholly owned subsidiary of BLT. These ratings also were placed on CreditWatch with negative implications.

The downgrade is driven by the company's high leverage and weak liquidity, S&P said.

Despite successfully getting funding for about $730 million since 2009, BLT's leverage has not improved materially and its liquidity remains weak, given its tight cash flow generating capacity and aggressive capital expenditures, the agency said.

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