S&P rates Buana Lintas notes B+

S&P said it assigned a preliminary B+ long-term issuer credit rating to PT Buana Lintas Lautan Tbk. (BULL).

The agency also said it assigned a preliminary B+ long-term issue rating to the company's proposed U.S. dollar-denominated senior unsecured notes.

BULL is a relatively small shipping company operating old vessels with geographical concentration in Indonesia, high dependence on a single customer and sizable capital expenditure through 2020, S&P said.

BULL has high revenue visibility and sizable margins in Indonesia's protected shipping market, driven by a substantial proportion of time charters; its leverage is moderate, the agency said.

The stable outlook reflects an expectation that BULL will steadily expand its fleet in the next 18 months and find contracts at attractive rates for additional vessels, so that its EBITDA almost doubles by 2020, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.