Dr M: Moody's assessment on Petronas not necessarily right

  • Nation
  • Monday, 24 Jun 2019

KUALA LUMPUR: Moody's Investors Service's assessment of Petroliam Nasional Bhd (Petronas) isn't necessarily right, says Tun Dr Mahathir Mohamad.

The Prime Minister said sometimes assessments aren't exactly right but Malaysia cannot criticise them as they are free to make their own evaluation.

"They are free to do their assessment but I believe that this downgrade will not affect Petronas," he said in a press conference after officiating the Asia Oil and Gas (AOGC 2019) conference on Monday (June 24).

Asked if Malaysia is prepared to face downgrades from other credit rating agencies, Dr Mahathir said it is up to the agencies.

"If they want to (downgrade), then let them. We cannot necessarily follow all the opinions of credit rating agencies," he added.

Last Friday (June 21), Moody's Investors Service downgraded Petronas's ratings to A2 (stable) from A1.

Based on Moody's updated assessment, Petronas no longer meets one of the characteristics required for a two notch uplift above sovereign (A3 stable).

Petronas, in a statement Saturday (July 22), emphasised that it's strong fundamentals remain unchanged despite the downgrading.

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