S&P assigns A- to Petronas Energy Canada notes

S&P said it assigned its A- long-term issue rating to a drawdown by Petronas Energy Canada Ltd. under the US$15 billion guaranteed global medium-term note program.

Petroliam Nasional Bhd. (Petronas: foreign currency A-/negative/--; local currency A/negative/--) unconditionally and irrevocably guarantees the proposed notes.

“The rating on Petronas reflects the company's ownership and control over Malaysia's large hydrocarbon resources, low-cost integrated operations, sound reserve life and record of reserve replacement, solid cash flow adequacy across a pricing cycle, and conservative financial policies,” S&P said in a news release.

“Tempering these strengths are Petronas’ exposure to the credit quality of the government of Malaysia (foreign currency A-/negative/A-2; local currency A/negative/A-1), concentration of reserves in Malaysia, and sustained capital spending and dividend payments.”

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