Moody’s, S&P assign Khazanah inaugural issuer credit rating of A3, A-

Moody’s, S&P assign Khazanah inaugural issuer credit rating of A3, A-

Rating supported by strong linkage to govt, role in implementing socio-economic objectives

KUALA LUMPUR – Khazanah Nasional Bhd has been assigned its inaugural issuer credit rating of A3 and A- from Moody’s Investors Service and S&P Global Ratings, respectively, reflecting the sovereign wealth fund’s “strong ability to meet its financial commitments even though susceptible to adverse economic conditions”.

Khazanah said in a statement that based on Moody’s and S&P’s analysis, Khazanah’s A3/A- rating was supported by its strong linkage to the government, its stakes in strategic Malaysian assets across key sectors, and its role in supporting and implementing the government’s socio-economic objectives.

Moody’s noted Khazanah’s ability to tap external funding, its track record of conservative financial practices and policies, and its commitment to operate within publicly articulated target leverage levels.

Khazanah managing director Datuk Amirul Feisal Wan Zahir said its focus remains on rebalancing the portfolio and creating value for its holdings.

“We expect markets to continue being volatile, but Khazanah is a long-term investor, and long-term investors are resilient against short-term volatility.

“Completing the portfolio transition and systematically paring down debt is paramount in producing a financially strong Khazanah that will fulfil its mandate to advance Malaysia,” he said.

Since 2004, Khazanah has been a regular issuer in the global capital markets and supported Malaysia’s aspiration to be the leading hub for Islamic finance through landmark transactions, including the world’s first exchangeable sukuk and the nation’s first sustainable and responsible investment sukuk.

As Khazanah does not receive regular capital infusions, it relies on its ability to generate returns and tap capital markets to fund its investments.

– Bernama, April 27, 2023

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