Fitch upgrades Petronas

In a corrected rating, Fitch Ratings said it upgraded the long-term issuer default rating and senior unsecured debt ratings of Petronas Capital Ltd. to A in addition to upgrading the ratings of Petroliam Nasional Bhd. (Petronas).

The agency upgraded Petronas' long-term foreign-currency issuer default rating and senior unsecured rating to A from A-, upgraded the short-term rating to F1 from F2 and affirmed the long-term local currency issuer default rating at A+ in August following the upgrade of Malaysia's country ceiling to A from A-.

The A ratings reflect Petronas' exceptionally strong business and financial profiles, characterized by strong profitability, healthy cash generation, low leverage and substantial liquidity, Fitch said. As Malaysia's national oil and gas company, Petronas is vested with the full ownership of and exclusive rights to explore and develop the entire country's oil and gas resources and enjoys favorable production sharing contracts, where international partners provide all the financing and bear all exploration and production risks in exchange for a share of production.

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