Negative rating outlook for Petronas LNG
KUALA LUMPUR: Moody’s Investors Service has changed Petroliam Nasional Bhd (Petronas) LNG Ltd’s (PLL) ratings outlook to negative from stable.
In a statement yesterday, Moody’s assistant vice-president and analyst Rachel Chua said the change of rating outlook for PLL was based on the ratings outlook for PLL’s ultimate parent, Petronas on Thursday.
“PLL is ultimately 100% owned by Petronas, Malaysia’s national oil company, which is in turn wholly-owned by the Malaysian government (A3 stable),” she said.
Chua said that given the negative ratings outlook, a ratings upgrade is unlikely.
“Moody’s will revise PLL’s ratings outlook to stable from negative only if Petronas’ ratings outlook is stabilised,” she said.
On Thursday, Moody’s said the rating action was due to the government’s announcement that Petronas would be paying RM26bil in dividends in 2018 and RM54bil (inclusive of a one-off special dividend of RM30bil) in 2019.
“The negative outlook on Petronas’ ratings reflects our view that its financial profile may deteriorate if the government continues to ask the company to keep dividend payments high, especially if oil prices decline,” it said. — Bernama