The acquisition value of US shipping company Chembulk Tankers by Berlian Laju Tanker Tbk has increased from US$500 million to US$850 million. As much as US$750 million of the acquisition fund will be from new loan.
In this regard BLTA has planned to search for money by selling non-core assets to cut the debt ratio. Fitch Rating has responded negatively by granting negative rating for the acquisition plan.
Fitch granted BB- rating for BLTA. The rating agency also granted BB- for US$400 million bonds issued by Berlian Laju Tanker Finance that will mature in 2014.
Fitch has predicted that the debt to EBITDA (earnings before interest, taxes, and amortization) ratio of BLTA will increase substantially from 2.7 times in the first half of 2007.
Tuesday, October 16, 2007
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