<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 23, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Results won't affect Temasek's rating: Moody's
It says latest results were within expectations, plans to keep Aaa rating
By SIOW LI SEN
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(SINGAPORE) Moody's Investors Service said Temasek Holdings' latest results released last Thursday were broadly within expectations and held no rating implications.
In a Monday press release, the rating agency said Temasek is rated Aaa with stable outlook.
'The rating had previously incorporated the expectation that Temasek's portfolio would report a significant decline in value, as well as weakened profitability and returns, reflecting the declines in global stock markets,' said Elizabeth Allen, Moody's vice-president and senior credit officer.
'Moreover, in this instance, the declines did not much affect the fundamental financial strength of the company.'
Temasek's financial leverage at the holding company level, as measured using both book values and market values, remains very low. Its gross book debt to equity ratio was maintained well under the rating threshold of 30 per cent.
'Its low leverage is partly due to the fact that its investments with shareholdings over 20 per cent are stated at cost in its balance sheet,' said Ms Allen.
'Post year-end date, the portfolio by market value has rebounded in value from $130 billion to $172 billion as at 31 July 09.'
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</TD></TR></TBODY></TABLE>The company's very solid financial position is also a reflection of gross debt falling moderately from FY08 to FY09.
Temasek reported net cash with very limited near-term debt repayments or committed outflows. Such an excellent liquidity position also supports the Aaa rating.
The rating is further underscored by steady recurring dividend income as well as a high-quality investment portfolio.
The Aaa rating would come under pressure only if both the ratings of the company and of the Singapore government (Aaa/Stable) were lowered, it said.
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Results won't affect Temasek's rating: Moody's
It says latest results were within expectations, plans to keep Aaa rating
By SIOW LI SEN
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(SINGAPORE) Moody's Investors Service said Temasek Holdings' latest results released last Thursday were broadly within expectations and held no rating implications.
In a Monday press release, the rating agency said Temasek is rated Aaa with stable outlook.
'The rating had previously incorporated the expectation that Temasek's portfolio would report a significant decline in value, as well as weakened profitability and returns, reflecting the declines in global stock markets,' said Elizabeth Allen, Moody's vice-president and senior credit officer.
'Moreover, in this instance, the declines did not much affect the fundamental financial strength of the company.'
Temasek's financial leverage at the holding company level, as measured using both book values and market values, remains very low. Its gross book debt to equity ratio was maintained well under the rating threshold of 30 per cent.
'Its low leverage is partly due to the fact that its investments with shareholdings over 20 per cent are stated at cost in its balance sheet,' said Ms Allen.
'Post year-end date, the portfolio by market value has rebounded in value from $130 billion to $172 billion as at 31 July 09.'
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Temasek reported net cash with very limited near-term debt repayments or committed outflows. Such an excellent liquidity position also supports the Aaa rating.
The rating is further underscored by steady recurring dividend income as well as a high-quality investment portfolio.
The Aaa rating would come under pressure only if both the ratings of the company and of the Singapore government (Aaa/Stable) were lowered, it said.
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