MISC's solid performance in the first half of 2016 was recently acknowledged by the Standard & Poor’s Rating Services (“S&P”) in their report issued on 11 August 2016 which upgraded MISC’s long-term corporate credit rating and the senior unsecured long-term ratings on MISC’s bank loans to ‘BBB+’ from ‘BBB’.
At the same time, S&P also affirmed their rating ‘axA+’ long-term ASEAN regional scale rating on MISC.
The full announcement may be viewed HERE.
Some of the key points in the announcement includes the following highlights :
- ‘The upgrade reflects our expectation that MISC will maintain solid cash flow adequacy ratios through 2018 because of a combination of steady cash flows, moderating capital spending and prudent financial policy’.
- ‘MISC’s performance in the first half of 2016 was solid, better than expected, with cash flows remaining resilient amid a difficult market environment’.
- ‘The stable outlook reflects our view that MISC will maintain a prudent growth strategy and financial management’.
The upgrade reflects S&P’s expectation that MISC will maintain solid cash flow adequacy over the next three years because of moderate capital spending, steady cash flows and prudent financial policies. It was also highlighted that MISC will keep its ratio of debt to EBITDA below 2.5x through 2018 by conservatively managing its growth, and that MISC will remain a strategically significant subsidiary of PETRONAS.
Moving forward, MISC remains committed to intensify its efforts in consistently providing better energy related maritime solutions and services and staying true to its commitment in moving energy to build a better world.
About Standard & Poor’s (S & P) Global Ratings
S&P Global Ratings has been the world's leading provider of credit ratings for more than 150 years. With more than 1 million credit ratings outstanding on government, corporate, financial sector and structured finance entities and securities, S&P ratings are essential to driving growth, providing transparency and helping market participants make decisions with confidence.