Moody's downgrades Petronas

Moody's Investors Service said it downgraded Petronas LNG Ltd.'s foreign- and local-currency issuer ratings to Baa1 from A3 following a decision to downgrade the ratings of PLL's ultimate parent, Petroliam Nasional Bhd. (Petronas) to A2 from A1.

The outlook also was changed from negative to stable.

PLL is ultimately 100% owned by Petronas, Malaysia's national oil company, which is in turn wholly owned by the government of Malaysia, Moody's said.

The downgrade was driven by the one-notch downgrade of its ultimate parent, the agency said.

The ratings continue to be positioned two notches lower than the A2 ratings of its ultimate parent, Petronas, Moody's said.

The top-down rating approach continues to reflect the governance framework under which PLL operates, the agency said.

Petronas indirectly owns 100% of PLL and continues to have strong operational and financial integration with PLL, Moody's said.

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