S&P Ratings On MISC, Petronas Not Affected By Proposed Takeover

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KUALA LUMPUR, Feb 13 , 2013 - Standard & Poor's Rating Services (S&P) said its ratings on MISC Bhd and Petronas will not be affected by Petronas' proposed conditional takeover of the shipping corporation.

It said the proposed transaction supported its assessment of MISC's strategic importance to its parent company, Petronas.

"In addition, the transaction is unlikely to have any effect on Petronas' financial risk profile," it said in a statement.

Petronas currently owned about 63 per cent of MISC.

The rating on MISC incorporated a three-notch uplift from the company's stand-alone credit profile of 'bb' to reflect strong business and financial support from Petronas.

"As a majority-owned subsidiary, MISC is already consolidated in Petronas' accounts.

"We believe that Petronas has sufficient financial resources to complete the takeover.

"Petronas' financial risk profile is "minimal" and its liquidity is "strong", as our criteria defines these terms," it added.

Recently, Petronas proposed to take MISC private with a cash offer of RM5.30 per share for what it does not already own.

More information: BERNAMA