KUALA LUMPUR – Moody’s Investors Service has assigned A2 ratings for the proposed US dollar-denominated senior unsecured notes to be issued by Petronas Capital Ltd and drawn down from its medium-term note (MTN) programme.
Moody’s analyst Hui Ting Sim said the A2 ratings reflect Petronas’ strong credit metrics and excellent liquidity, with a track record of maintaining a net cash position through the oil price cycle.
The notes will be unconditionally and irrevocably guaranteed by parent Petroliam Nasional Bhd on an unsubordinated basis, and the guarantee will rank pari passu with the unsecured and unsubordinated obligations of Petronas.
“The proceeds will be used for debt refinancing and general corporate purposes, while the rating outlook is stable,” said Moody’s in a statement.
On the rating rationale, it said Petronas’ credit metrics will likely stay strong through this year to the next, with adjusted debt or capitalisation at around 22%.
Meanwhile, Petronas reported that its net cash position fell to RM52 billion last year from RM82 billion in 2019 due to the negative free cash flows arising from challenges caused by the Covid-19 pandemic.
Nevertheless, Petronas’ liquidity and credit metrics remain excellent despite the difficult market conditions. – Bernama, April 22, 2021
