KUALA LUMPUR: Moody’s Ratings has assigned a first-time A3 issuer rating to PETRONAS International Corporation Ltd (PICL), with a stable outlook, reflecting the company’s strategic importance to parent Petroliam Nasional Bhd (PETRONAS).
PICL is PETRONAS’ international arm and serves as the group’s primary vehicle for oil and gas operations outside Malaysia, covering exploration and production as well as liquefied natural gas (LNG) marketing and trading.
Moody’s said PICL accounted for more than 20% of PETRONAS’ production and assets and over 40% of the group’s reserves in 2025.
“PICL’s A3 issuer rating reflects its strategic importance to its parent, Petroliam Nasional Berhad (PETRONAS) (A2 stable),” Moody’s vice-president Rachel Chua said.
She said this was demonstrated by PICL’s contribution to the group’s production and earnings, close parental oversight, liquidity integration and track record of support.
Moody’s estimated PICL’s standalone credit strength to be in the mid-to-low Baa range, supported by the scale of its international oil and gas operations and cash flow generation capacity.
The rating agency said PETRONAS exercises a high degree of oversight over PICL, including board composition, senior management appointments, funding and risk management decisions.
PICL’s liquidity also benefits from its integration with PETRONAS’ centralised treasury and access to group funding.
As at December 2025, PICL had US$4.7bil of shareholder advances and US$20.6bil of non-interest-bearing perpetual redeemable preference shares outstanding.
PETRONAS also guarantees most of PICL’s external borrowings, including US$600mil of senior unsecured notes issued by subsidiary PETRONAS Energy Canada Ltd.
Moody’s said PICL’s stable outlook reflects that of PETRONAS, adding that the subsidiary’s issuer rating would continue to track its parent’s rating unless its operations and credit quality deteriorate or its asset profile changes substantially.
PICL’s rating would only be upgraded if PETRONAS’ rating is upgraded, while a downgrade of the parent would result in a corresponding downgrade of PICL.
Changes to PICL’s strategic importance to PETRONAS, its asset ownership or a material increase in external debt could also put downward pressure on the rating.
