Fitch: Petronas unaffected

Fitch Ratings said Petroliam Nasional Bhd.'s proposed acquisition of Progress Energy Resources Corp. will not have an immediate impact on its ratings. Petronas is rated long-term foreign- and local-currency issuer default A with stable outlook and short-term foreign-currency issuer default rating F1. It has a foreign-currency senior rating of A, including debt issued by Petronas Capital Ltd. that is guaranteed by Petronas, and Petronas Global Sukuk Ltd.'s dollar trust certificates are rated A.

In the agency's view, Petronas' rating has adequate headroom, including its solid net cash position, for acquisitions of this size. Under the terms of the proposed acquisition, Petronas will pay around C$5.5 billion for 100% of Progress Energy and its outstanding convertible debentures. The transaction is expected to close by the end of September and will be funded by cash on hand.

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