Tuesday, May 08, 2001
Malaysian Rating Corporation Berhad (MARC) has assigned an Islamic debt rating of AAAID (Triple A, Islamic Debt) to PETRONAS Assets Sdn Bhd’s (PAssets) Bai Al-Dayn Notes Issuance Facility with a nominal value of RM282 million (the NIF).
PAssets is a wholly owned subsidiary of Petroliam Nasional Berhad (PETRONAS) and is in the business of owning and leasing of assets. The Company owns and has granted an exclusive right of use of the PETROSAINS The Discovery Centre’s assets (the Assets) to PETRONAS for an indefinite period. In consideration for this exclusive right, PETRONAS will make rental payments to PAssets on terms to be mutually agreed upon.
Under the NIF, PETRONAS shall issue a series of Promissory Notes (PNs) covering the tenure of the NIF of seven years. Notwithstanding the utilization period, PAssets will continue to receive payment under the PNs. The PNs set the minimum rental payments receivable by PAssets, and represent the underlying asset backing PAssets’ NIF. The rental payments shall however, be reviewed annually taking into consideration any replacements, disposals or additions of the Assets. The operation and maintenance of the Assets including the related expenditure are to be borne by PETRONAS.
The rating reflects the credit strength of PETRONAS, the user of the Assets, and the obligor of the PNs. Payments arising from the PNs form the primary source of repayment of the Notes. 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.
The Notes shall be redeemed annually over a period of seven years, with maturities corresponding with the maturities of the PNs. A Finance Service Reserve Account (FSRA) will be established and built up progressively until the balance is equivalent to the next 12 months’ finance service. Both the rights under the PNs and the FSRA will be assigned as security for the Facility. MARC considers the amounts receivable under the PNs to be more than adequate to redeem the Notes.
PAssets’ strong finance service capacity is derived from the stability and predictability of its cash flows. The primary source of income is rental while the major outflows comprise payments under the Facility.
PAssets is a wholly owned subsidiary of Petroliam Nasional Berhad (PETRONAS) and is in the business of owning and leasing of assets. The Company owns and has granted an exclusive right of use of the PETROSAINS The Discovery Centre’s assets (the Assets) to PETRONAS for an indefinite period. In consideration for this exclusive right, PETRONAS will make rental payments to PAssets on terms to be mutually agreed upon.
Under the NIF, PETRONAS shall issue a series of Promissory Notes (PNs) covering the tenure of the NIF of seven years. Notwithstanding the utilization period, PAssets will continue to receive payment under the PNs. The PNs set the minimum rental payments receivable by PAssets, and represent the underlying asset backing PAssets’ NIF. The rental payments shall however, be reviewed annually taking into consideration any replacements, disposals or additions of the Assets. The operation and maintenance of the Assets including the related expenditure are to be borne by PETRONAS.
The rating reflects the credit strength of PETRONAS, the user of the Assets, and the obligor of the PNs. Payments arising from the PNs form the primary source of repayment of the Notes. 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.
The Notes shall be redeemed annually over a period of seven years, with maturities corresponding with the maturities of the PNs. A Finance Service Reserve Account (FSRA) will be established and built up progressively until the balance is equivalent to the next 12 months’ finance service. Both the rights under the PNs and the FSRA will be assigned as security for the Facility. MARC considers the amounts receivable under the PNs to be more than adequate to redeem the Notes.
PAssets’ strong finance service capacity is derived from the stability and predictability of its cash flows. The primary source of income is rental while the major outflows comprise payments under the Facility.