Moody's rates PSA International notes Aaa

Moody's Investors Service said it assigned an Aaa rating to the $3.5 billion medium-term note program of PSA International Pte. Ltd., along with an Aaa rating to the proposed drawdown of about $500 million. The issuer and bond ratings remain unchanged at Aaa.

The outlook is stable.

The proceeds from the 10-year notes will be used for refinancing and general corporate purposes.

The ratings reflect the likelihood of support from its major shareholder, Temasek Holdings Pvt. Ltd., Moody's said, and the company's position as one of the world's largest port operators with a global footprint.

The ratings are further underpinned by its close to 100% market share in Singapore, the largest port in the world, the agency said.

Balancing the strong operating profile is its financial metrics, which have weakened since 2006 when it began to expand at a fast pace globally, Moody's said. Its debt-to-EBITDA ratio of 4.5 times in 2008 is considered high for its rating and is expected to weaken further in 2009, the agency added.

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