Moody's affirms Temasek

Moody's Investors Service said it affirmed the Singapore-based Temasek Holdings (Pte.) Ltd.'s Aaa issuer rating after the company announced that it has entered into an agreement to purchase about 11.55% of Standard Chartered plc, subject to regulatory approvals. The outlook is stable.

The affirmation reflects the fact that Temasek's financial fundamentals are still sufficient to support its current rating and that the company has, over the last quarter, monetized some of its investments, including various short-term bond and equity investments as well as a 4.6% stake in Singapore Telecommunications Ltd., to maintain its liquidity and contain its leverage, the agency said.

The proposed acquisition is expected to be funded by internal cash and other reserves, so Temasek's leverage at the holding company level will stay below 20%, while cash flow to gross interest coverage will remain above 20x, the agency predicted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.