Moody's affirms MISC

Moody's Investors Service said it affirmed MISC Bhd's issuer and senior unsecured debt ratings of A3.

The outlook remains stable.

This affirmation follows news that MISC proposes to raise about RMB5.2 billion through a renounceable rights issue of 744 million ordinary shares at RMB7 per share, to merge local and foreign shares and to increase authorized shares to RMB 10 billion, Moody's said.

If the new equity issuance is completed, MISC's liquidity position and financial profile will improve, Moody's said. As a result, its credit metrics could improve with a debt-to-EBITDA ratio of 3.9x, the agency said.

The proceeds would provide a material financial cushion for the company at a time when the overall industry is weak, Moody's added.

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