Fitch ups Petronas

Fitch Ratings said it upgraded Petroliam Nasional Berhad's ratings to senior unsecured foreign currency A- from BBB+ and local currency A+ from A. The outlook is stable.

The rating action is triggered by Fitch's sovereign upgrade earlier this week of the Federation of Malaysia to foreign currency A- from BBB+ and local currency A+ from A.

"Petronas' foreign currency rating continues to be constrained by the Malaysian sovereign, which implies that a future upgrade of Malaysia's foreign currency rating would trigger an upgrade of the same for Petronas," said Fitch's Charles Chang.

"Petronas' local currency rating, however, is not constrained by the Malaysian sovereign. In our view, the rating of A+ appropriately reflects Petronas' fundamental strengths. An upgrade of Malaysia's local currency rating in the future, therefore, would not necessarily lead to an upgrade of the same for Petronas," Chang said.

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