OREANDA-NEWS. Fitch Ratings Indonesia has placed PT Aetra Air Jakarta's (Aetra) National Long-Term Rating of 'A+(idn)' on Rating Watch Evolving following the Central Jakarta District Court's ruling annulling the co-operation agreement between Aetra and PAM Jaya (the state-owned water utility company).

Fitch has simultaneously withdrawn the ratings due to insufficient information to maintain ratings on Aetra. There are no public debt instruments outstanding since the company repaid its rupiah bonds on 13 March 2015. Accordingly, Fitch will no longer provide ratings or analytical coverage of Aetra.

The Rating Watch Evolving follows the ruling by the Central Jakarta District Court on 24 March 2015 that annulled the co-operation agreements between PAM Jaya and two private water operators in Jakarta, Aetra and PT PAM Lyonnaise Jaya.

Aetra is currently appealing the decision by the court. While the appeal process is on-going, the co-operation agreement remains intact and Aetra continues operations as usual.

Fitch does not see any immediate refinancing risks for Aetra arising from the court ruling. The company successfully repaid the bonds that fell due on 13 March 2015. Aetra's robust cash flows from operations should be able to cover its debt servicing requirements, including the principal amortisation of its remaining bank debt as long as Aetra's operations continue unaffected.

The placement of the rating on Rating Watch Evolving reflects the uncertainties surrounding the treatment of Aetra's assets and liabilities in the event the district court decision is upheld.