KUALA LUMPUR: Moody’s Traders Service has affirmed Tenaga Nasional Bhd‘s (TNB) A3 senior unsecured bond and senior unsecured credit score facility scores with a steady outlook.
The score company additionally has affirmed TNB’s baa2 Baseline Credit score Evaluation (BCA).
The affirmation follows TNB’s new regulated tariffs for the third regulatory interval (RCP3) ending in December 2024, which is able to help the upkeep of its monetary metrics at ranges per its baa2 BCA, Moody’s stated.
“TNB’s baa2 BCA, in flip, captures its robust market place and average monetary profile, in addition to the supportive, however nonetheless comparatively new regulatory framework underneath which it operates,” it stated in a press release, right now.
Moody’s expects TNB to take care of average monetary leverage, as measured by retained money stream (RCF)/debt, of round 13 per cent throughout RCP3 based mostly on the regulated base tariff of 39.95 cents per kilowatt hour and an permitted capital expenditure allowance of RM20.555 billion for regulated companies.
“TNB exhibited steady earnings in the course of the pandemic, benefiting from a supportive regulatory framework designed to guard its regulated income from declines in energy demand,” it stated.
Moody’s stated it understands that earnings from TNB’s unregulated technology enterprise predominantly comes within the type of capability funds, unbiased from precise energy dispatch or gas costs.
“The steady score outlook displays TNB’s predictable operations and money stream, underpinned by a supportive regulatory regime designed to guard the corporate in opposition to fluctuations in quantity demand or gas prices,” it stated. – Bernama