Moody's affirms A1 ratings of Petronas, outlook stable

Business & Markets 2013
Written by Bernama
Thursday, 16 May 2013 18:49
A + / A - / Reset

KUALA LUMPUR (May 16): Moody's Investors Service has affirmed the
A1 issuer rating and senior unsecured rating of Petronas and A1 senior
unsecured ratings of Petronas Global Sukuk Ltd and Petronas Capital
Ltd, with stable outlook.
Moody's Vice President and Senior Analyst Simon Wong said the A1
issuer rating of Petronas reflects its substantial cash generation,
conservative financial profile, strong liquidity and financial flexibility even
after considering its recent acquisitions and a large capital expenditure
programme of RM300 billion to be implemented over the next five years.
"Furthermore, we expect the company to closely manage and diversify
its exposure to geopolitical risks as the proportion of oil and gas
production from its international portfolio, especially from South Sudan
and Iraq, will rise over the next few years," he said in a statement
today.
Production from its international portfolio was 14.4 per cent of its total
oil and gas entitlement for the fiscal year ended Dec 31, 2012.
Moody's expects the proportion to increase in 2013 and 2014 with the
resumption of production in South Sudan and production ramp ups in
Iraq. -- BERNAMA