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Bulletin: Lack Of Tariff Adjustment Mechanism Raises Warning Bells For Tenaga Apr 08
Standard & Poors, April 2008
Abstract
SINGAPORE (Standard & Poor's) April 25, 2008--Standard & Poor's Ratings Services said today that the recent increase in coal prices has no immediate impact on the ratings on Tenaga Nasional Bhd. (BBB/Stable/--) considering the company has locked in the coal price for its 2008 needs. Tenaga's adequate liquidity, access to capital markets, and continued gas subsidies also help mitigate any pressure on its credit profile. Should rising costs stress its financial risk profile, we expect Tenaga to exercise more discretion in dividend payouts and to defer capital investment plans, thereby reducing the need for additional external funding. Nevertheless, we view these measures as providing only interim relief, as the lack of a consistent and transparent regulatory system prevents full pass-through...
Companies mentioned in this report are: Tenaga Nasional Bhd.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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