Moody's affirms A1 ratings of Petronas, outlook stable

KUALA LUMPUR, May 16 (Bernama) -- 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.