Fitch revises Berlian Tanker's outlook to Stable

Fitch Ratings has revised the Indonesian shipping company-based PT Berlian Laju Tanker Tbk's outlook to Stable from Negative. Its long-term foreign and local currency issuer default ratings (IDR) have been affirmed at 'B-', respectively.

the agency has upgraded BLT Finance B.V.'s US$400m senior unsecured notes due 2014 to CCC from CC and revised the recovery rating to RR5 from RR6. The notes are guaranteed by Berlian Tanker. The revision of outlook to Stable reflects the significant improvement to the company liquidity profile due to its successful debt refinancing, which reduces its debt servicing requirement, and a material reduction of its capex for 2011 and 2012.

Berlian Tanker has substantially reduced the outlay for new builds to US$122 million from US$240 million in 2011 and to US$52 million from US$80 million in 2012.

The company, received commitments from six banks for a $685 million term loan. The loan, is secured by 43 ships and has a maturity of five years. It also includes a debt service
coverage covenant which is based on cash flows and liquidity amount, allowing the company enhanced flexibility.
Berlian Tanker, based in Jakarta, has $2.27 billion of bonds and loans maturing before the end of 2017. Proceeds of this facility will be used to repay debt and fund three ships under construction.
The loan will help trim Berlian Tanker's debt payments by US$166.9 million over the next three years, increasing liquidity and the company's debt service coverage ratio significantly.

It will also fund 81 percent of the company's new building capital requirements in 2011. DnB NOR Bank ASA, Nordea Bank AB, Standard Chartered Plc, ING Groep NV, NIBC Bank NV and BNP Paribas SA are the lenders.