S&P: Ranhill outlook stable

Standard & Poor's said it revised the outlook on Ranhill Bhd. to stable from negative and affirmed its B long-term corporate credit rating as well as B- rating on the $220 million five-year senior unsecured notes due in October 2011 issued by Ranhill (L) Ltd.

"We revised the outlook and affirmed the ratings to reflect the improvement in Ranhill's financial risk profile due to lower debt following the transfer of its water assets to the Malaysian government," S&P analyst Andrew Wong said in a statement.

In addition, the company is moving away from risky ventures by exiting oil exploration projects and focusing on the stable utilities businesses, the agency noted.

As of June 30, debt-to-EBITDA ratio was 4.2x compared with its three-year average from 2007 to 2009 of 10.4x.

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