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Tenaga Nasional Bhd. Feb 09
Standard & Poors, February 2009
Support from the Malaysian government Strong market position Lack of a clear regulatory system Weak financial profile Significant generation overcapacity The corporate credit rating on Tenaga Nasional Bhd. reflects substantial government support given the company's key role in the Malaysian economy as the sole transmitter and distributor of electricity and main power generator (55% of total generating capacity). Although this role comes at a cost to Tenaga by way of government-controlled tariffs, government support continues through subsidized gas from a supply contract with Petroliam Nasional Bhd. (Petronas; foreign currency A-/Stable/--; local currency A+/Stable/--). In addition, the government previously provided a guarantee on one of Tenaga's loans during the Asian crisis. While Tenaga is expected to operate increasingly as a market-oriented...
Companies mentioned in this report are: Tenaga Nasional Bhd.
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: Full Analysis
Tenaga Nasional Bhd.