Unfortunately I don't think that there is any way to avoid that with the image that you are trying to rotate, especially at that small degree of rotation. Because of all the 1 pixel lines in the graphic, photoshop has a hard time keeping them all neat. You could try a few things though. After pressing ctrl+t, hold down the shift key as you rotate. This will rotate the image in 15° increments, which will keep everything crisp. That might give you more of a rotation than you want though... The other option is to manually enter the degrees of rotation. When you are in 'transform' mode (ctrl+t) options appear at the top of your workspace. *see attachment* You can get slightly better results if you rotate whole #'s for example 5° rather than 4.3°