Monday, Mar 04, 2002
Malaysian Rating Corporation Berhad (MARC) has assigned Islamic debt ratings of MARC-1ID/AAAID (Islamic Debt) to PETRONAS Assets Sdn Bhd’s (PAssets) Al-Murabahah Commercial Papers/Medium Term Notes (CP/MTN) Programme with nominal value of up to RM500 million.
The ratings reflect the credit strength of Petroliam Nasional Berhad (PETRONAS), the user of specific Assets belonging to Petronas Assets Sdn Bhd (PAssets), and the obligor of the monthly Asset Utilization Fee (AUF). Payments arising from the AUF form the primary source of repayment of the CP/MTN. PETRONAS’ credit strength is superior and is drawn from its robust cash flow generation that is supported by a favourable production profile, strong profitability measures, sound capital structure and its significant role in the Malaysian economy.
PETRONAS Assets Sdn Bhd (PAssets) is a wholly owned subsidiary of PETRONAS and is in the business of owning and leasing of assets. The company has acquired specific Assets from PETRONAS and will subsequently grant the use of these assets to PETRONAS for seven (7) years. In consideration for this right, PETRONAS will make monthly fee payments to PAssets under the Asset Utilization Agreement (AUA). The AUA provides for an annual review of the AUF which shall take into consideration all operating, maintenance, replacement, insurance and upgrade costs, purchase of new assets and debt service.
A Finance Service Reserve Account (FSRA) will be established to accumulate an Agreed Percentage of the monthly AUF received. The amounts accumulated therein shall be applied to reduce the CP/MTN limit annually, commencing on the first anniversary from issue date over a period of seven (7) years.
PAssets’ strong finance service capacity is derived from the stability and predictability of its cash flows. The primary source of income is the AUF while the major outflows comprise payments under the CP/MTN Programme.
The ratings reflect the credit strength of Petroliam Nasional Berhad (PETRONAS), the user of specific Assets belonging to Petronas Assets Sdn Bhd (PAssets), and the obligor of the monthly Asset Utilization Fee (AUF). Payments arising from the AUF form the primary source of repayment of the CP/MTN. PETRONAS’ credit strength is superior and is drawn from its robust cash flow generation that is supported by a favourable production profile, strong profitability measures, sound capital structure and its significant role in the Malaysian economy.
PETRONAS Assets Sdn Bhd (PAssets) is a wholly owned subsidiary of PETRONAS and is in the business of owning and leasing of assets. The company has acquired specific Assets from PETRONAS and will subsequently grant the use of these assets to PETRONAS for seven (7) years. In consideration for this right, PETRONAS will make monthly fee payments to PAssets under the Asset Utilization Agreement (AUA). The AUA provides for an annual review of the AUF which shall take into consideration all operating, maintenance, replacement, insurance and upgrade costs, purchase of new assets and debt service.
A Finance Service Reserve Account (FSRA) will be established to accumulate an Agreed Percentage of the monthly AUF received. The amounts accumulated therein shall be applied to reduce the CP/MTN limit annually, commencing on the first anniversary from issue date over a period of seven (7) years.
PAssets’ strong finance service capacity is derived from the stability and predictability of its cash flows. The primary source of income is the AUF while the major outflows comprise payments under the CP/MTN Programme.