Moody's: Petronas has headroom for more acquisitions

The iconic Petronas Twin Towers in Kuala Lumpur, the headquarters of Petronas.

PETALING JAYA: Petroliam Nasional Bhd (Petronas) still has comfortable headroom for further acquisitions although there is pressure from large capital-spending programmes on the standalone credit quality of many Asian investment-grade oil and gas companies, according to Moody’s Investors Service.

While companies at the lower end of the investment-grade rating scale will continue to face greater pressure from large debt-funded acquisitions and investments, Moody’s identified three companies, including Petronas, which are cushioned by their large cash holdings and relatively low debt level.