Moody's downgrades MISC

Moody's Investors Service said it downgraded the senior unsecured issuer and debt ratings of MISC Bhd. to Baa2 from Baa1.

The outlook remains negative.

The action reflects a weaker-than-expected performance for the nine months ending in December 2011, higher-than-tolerance leverage and a view that the company's cash flows are unlikely to materially improve over next 12 to 18 months given the weak industry outlook, Moody's said.

The outlook remains negative, reflecting concerns about a substantial funding gap for the year 2012, which if funded by debt may result in a further increase in leverage, the agency said.

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