Fitch lifts Tenaga standalone profile

Fitch Ratings said it affirmed Tenaga Nasional Bhd.'s long-term foreign- and local-currency issuer default ratings and senior unsecured rating at A-.

Fitch said it upgraded Tenaga's standalone credit profile to BBB+ from BBB due to the consistent application of the country's imbalance cost pass-through mechanism, especially over the previous 12 months when Tenaga's generation costs were higher than the benchmark.

The outlook is stable.

The ratings are equalized with those of Malaysia's ratings to reflect its strong likelihood of support from the sovereign as a government-related entity, Fitch said.

The agency said it sees Tenaga's status, ownership and control by the Malaysian sovereign as moderate.

S&P also said it believes the company's investment decisions are more commercially based than those of its peers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.