Neg­a­tive rat­ing out­look for Petronas LNG

The Star Malaysia - StarBiz - - News -

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

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