Moody's affirms MISC

Moody's Investors Service said it affirmed MISC Bhd.'s issuer and senior unsecured debt ratings of A3.

The outlook remains stable.

This affirmation follows news that MISC is entering into an agreement to acquire 50% interest in VTTI BV, a petroleum products tank terminal operator with a combined capacity of about six million cubic meters spread over 11 countries, Moody's said.

MISC will fund the $735 million acquisition with cash on hand, the agency said. VTTI is currently free of external debts, while any future borrowings by VTTI for expansion will be unlikely to materially increase MISCs debt leverage, the agency added.

Moody's said it expects credit metrics will improve in line with the gradual improvement in market conditions, rationalization of the company's liner operations and delivery of new offshore production units and tankers.

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