Norwegian bank DNB ASA (DNB.OS) has an exposure to Indonesian shipping company Berlian Laju Tanker (B66.SG), which late Thursday said it would cease payments on its debts after breaching covenants on a loan facility, DNB spokesman Thomas Midteide told Dow Jones Newswires Friday.

Midteide declined to comment on the size of DNB's exposure, or to provide any further detail.

Chemical tanker operator Berlian Laju, which by September last year had interest bearing net debt of around $1.67 billion, Thursday said it will be ceasing payments on its debts as lower freight rates and higher bunker fuel costs had "significantly impacted the company's business and financial position."

The company estimates around $418 million in payments are due to be made this financial year, it said in a statement to the Singapore Exchange.

Many shipping firms, especially in the tanker and dry bulk segments, have come under pressure from the global economic turmoil and an oversupply of ships, and DNB's share price has been weighed in recent quarters by concerns the bank could suffer losses on its large shipping portfolio. Despite the headwinds, DNB's shipping portfolio is generally solid, Midteide said.

DNB, one of the world's largest shipping financiers, in December last year said it has managed to minimize writedowns in the segment, even as parts of the market are under stress and loan losses could rise from the levels seen in the third quarter 2011.

At 1018 GMT, shares in DNB were down 1.4% at NOK60.90 against a 0.2% rise in the wider Oslo market.

-By Gustav Sandstrom, Dow Jones Newswires; +46-8-5451-3099; gustav.sandstrom@dowjones.com