Moody's ups Malaysia International Shipping view to positive

Moody's Investor Service said it changed to positive from stable the outlook for the Baa1 foreign and local currency issuer ratings of Malaysia International Shipping Corp. Berhad (MISC). Moody's has also changed to positive from stable the outlook on the Baa1 foreign currency senior unsecured rating of MISC Capital (L) Ltd.

Moody's said the change in outlooks follows MISC's recent announcement of the sale of 32 bulk vessels, marking its exit from the bulk-shipping business. The rating agency believes that the sale will strengthen the company's operating profile due to the greater reliance on the more stable business of shipping liquefied natural gas and petroleum, which relate primarily to Petroliam Nasional Berhad (Petronas; rated A2).

Furthermore, the company's intention of deploying the sale proceeds toward debt reduction will moderately enhance its financial position as its credit metrics should trend toward levels more commensurate with an A3 rating.

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