Fitch lifts Petronas to stable

Fitch Ratings said it revised the outlook on Petroliam Nasional Bhd.'s (Petronas) long-term foreign- and local-currency issuer default ratings to stable from negative.

The long-term foreign- and local-currency issuer default ratings also were affirmed at A and its short-term foreign-currency issuer default rating at F1.

Fitch also affirmed the company's foreign-currency senior unsecured rating at A, including debt issued by Petronas Capital Ltd., which is guaranteed by Petronas.

This follows the recent revision of outlook on Malaysia to stable from negative and the affirmation of the country's foreign-currency issuer default rating at A-, local-currency issuer default rating at A and country ceiling at A.

The company’s ratings are constrained by the sovereign ratings, Fitch said as Petronas is 100%-owned by Malaysia and the government can exert significant influence over its operating and financial policies, Fitch said.

The company has a very strong standalone profile despite its heavy financial commitments imposed by the government and with weakened oil and gas prices.

Fitch said it considers Petronas to be Malaysia's strongest foreign-currency debtor.

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