S&P affirms Petronas

Standard & Poor's said it affirmed the A- foreign currency rating and A+ local currency rating on Petroliam Nasional Bhd. (Petronas). The A- ratings on all foreign currency senior unsecured debt issued by the company and subsidiary Petronas Capital Ltd. are also affirmed.

The outlook is stable.

S&P said the ratings reflect the company's exclusive ownership and control over Malaysia's large hydrocarbon resources, its low-cost integrated operations and a very strong financial profile; robust profitability has enabled the company to maintain an above-average financial profile, despite its aggressive overseas expansion program.

These factors are offset by above-average industry risk and political, capital and execution risks related to an increasingly large presence outside Malaysia.

Petroliam Nasional is highly integrated with the Malaysian government, and the ratings are consistent with those on the sovereign (foreign currency A-/stable/A-2; local currency A+/stable/A-1), the agency said.

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