PETALING JAYA: Malaysia Rating Corp Bhd (MARC) has affirmed Tenaga Nasional Bhd’s (TNB) issuer rating of AAA and sukuk rating of AAAIS on the utility group’s B’s RM2bil Al-Bai’ Bithaman Ajil Islamic Financing Bonds (sukuk).
The rating agency said in a statement that TNB’s ratings outlook is “stable”.
The ratings incorporate a two-notch rating uplift based on MARC’s assessment of a high likelihood of government support given TNB’s critical role as the country’s principal energy provider.
On a standalone basis, TNB’s credit strength lies in its continued monopoly in electricity transmission and distribution in Peninsular Malaysia and Sabah, its significant electricity generation capacity of 14,590MW and its strong operational track record, added MARC.
The rating agency also noted that the internal re-organisation of TNB is on track.
The transfer of assets to TNB Power Generation Sdn Bhd (Genco) was completed on Oct 1,2020 while the transfer of assets to TNB Retail Sdn Bhd (Retailco) is expected to be completed in January 2021. — Bernama