Fitch Ratings has assigned Indonesian tanker owner Buana Lintas Lautan (BULL) a B+ issuer default rating.
The outlook for the company is stable, it said.
BULL said last month it was looking raise IDR 1.2 trillion ($84.3m) in a share issue as it eyes fleet expansion.
It said 60% of the proceeds will be used to buy new ships, with 10% going towards docking expenses and the rest for working capital.
BULL was established in 2005 as a domestic shipping subsidiary of Berlian Laju Tanker (BLT), which faced financial difficulties in 2012.
BLT's stake in BULL subsequently dropped to zero by 2014 and it no longer exerts any management control over BULL, which is now majority owned by the Danatama Group, Fitch said.
BULL estimates it has a 26% share of the vessels contracted by state oil major Pertamina in the 30,000-110,000 dwt category.
"The rating is underpinned by a robust position in an industry protected from foreign competition by cabotage laws, a strong relationship with demand driver Pertamina and a high share of time-charter contracts," Fitch said.
"However, the rating is weighed down by a relatively small and old fleet. We estimate BULL will maintain a moderate leverage profile over the next three years."
