Thursday 30, September 2010 by

Marc affirms MISC's Islamic debt ratings at MARC-1ID/AAAID

The press release said that the affirmed ratings reflect MISC's established position and long track record in the energy transportation segment, the close strategic alignment of its business with that of its parent, Petroliam Nasional Berhad (Petronas) and the relatively predictable earnings and cash flow stream provided by its liquefied natural gas (LNG) shipping and offshore business segments. The rating also incorporates MISC's strong liquidity position, moderate debt burden and sound debt management practices. These strengths are tempered by MISC's recent limited free cash flow, mostly due to growth-related capital spending and the lacklustre performance of the shipping industry in general.

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