S&P: SMRT unaffected

Standard & Poor's said the recent partial divestment by Temasek Holdings Pte. Ltd. of its stake in SMRT Corp. Ltd. (AAA/stable) by itself would not have an impact on the ratings on SMRT.

Temasek Holdings (AAA/stable) recently reduced its stake in SMRT to 54.7% from 62.3% and although the Singapore government and Temasek do not guarantee any of SMRT's debts, S&P said it recognizes the important public policy role that SMRT fulfils in providing essential and efficient public mass transport services in the country.

The government is therefore expected to have a strong interest in ensuring SMRT's financial health and viability, the agency noted, adding the reduced government ownership in SMRT should not diminish the implicit support and oversight by the government, given that the mass rail transit forms the backbone of Singapore's transport system and is a fundamental necessity.

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