Moody’s Affirms MISC’s A3 Rating
3 June 2010

MISC Berhad is pleased to announce that Moody's Investors Service (Moody’s) has affirmed MISC’s issuer and senior unsecured debt ratings of A3. This affirmation follows MISC’s recent announcement on the proposed acquisition of 50% of the shares in VTTI B.V. ("VTTI"), currently a wholly‐owned subsidiary of Vitol, for a price of US$735 million, subject to price adjustment.

VTTI owns and operates a network of petroleum products terminals with a gross combined capacity of nearly 6 million cubic metres, which is set to expand to more than 7 million cubic metres by 2013. With interests spanning over 11 countries and 5 continents, VTTI is one of the top ten independent tank terminal operators in the world. The acquisition of 50% interest in VTTI is a key element in developing the company's global tank terminal business, in line with its strategy to expand its service offerings across the value chain.

"MISC will be able to fund the approximately US$735 million acquisition with cash on hand, of which it had USD2.4bn as of March 2010," says Peter Choy, a Moody's Vice President and Senior Credit Officer.

"Furthermore, VTTI is currently free of external debts, while any future borrowings by VTTI for expansion will be unlikely to materially increase MISC's debt leverage," says Choy.

According to Moody’s, MISC's A3 ratings continues to reflect a combination of the strong support from its parent, Petronas (A1/Negative), and its stand‐alone rating of Baa3. MISC's fundamental rating of Baa3 reflects its ability to secure employment of vessels through aligning its business development with that of its parent, PETRONAS; the diversified nature of its fleet and leading market position in liquefied natural gas ("LNG") transportation which provides it with stable income; the fact that about half of its revenue is derived from term contracts which protects it against cyclical freight rates; and its good management track record.