Standard & Poor’s affirms MISC’s “A-” rating

Standard & Poor’s affirms MISC’s “A-” rating

Standard & Poor’s affirms MISC’s “A-” rating

   Standard & Poor’s, the New York-based investment rating service, has affirmed its “A-” corporate credit rating for Kuala-Lumpur-based MISC Berhad.
   “The ratings reflect MISC’s substantial recurrent cash flow from its LNG business, its strong competitive position and track record, satisfactory and improving financial profile, and its strategic importance to Petronas,” said Standard & Poor’s credit analyst Greg Pau. “These strengths are partly offset by higher earnings volatility in the non-LNG business and keen competition and cyclicality in the shipping industry.”
   Last week, MISC recorded a pre-tax profit of $175.1 million for the quarter ending Sept. 30, a 14.7 percent climb over the corresponding quarter in 2004.
   Standard & Poor’s said MISC’s ratings are supported by the strong credit profile of its 62 percent owner Petronas, Malaysia’s national integrated oil and gas company. About two-thirds of all MISC’s revenue is derived from providing transportation services to Petronas.
   The ratings company said MISC’s rating “may be lowered if Petronas ceases to be a majority shareholder or significant revenue contributor to MISC.”