KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) says Moody’s Investor Services’ withdrawal of its rating on the US$1.75 billion bonds issued by 1MDB Energy Ltd is because of “Moody’s own business reasons".
The strategic development company reiterated that its liquidity position is strong and it remained focused on execution of its rationalisation plan.
“1MDB would like to make it clear that the withdrawal was undertaken without a downgrade in Moody’s ‘Aa2’ credit rating for the Energy notes and that the Energy notes continue to benefit from a ‘AA’ rating from Standard and Poor's,” it said in a statement yesterday.
1MDB explained that -the “Aa2" credit rating had remained valid up to the point of rating withdrawal, and that the withdrawal was done with no downgrade of the rating.
“When Moody’s indicates that a credit rating was withdrawn for ‘business reasons’, this refers to its business reasons, not the business reasons of the rated entity or obligor.
“Moody’s business reasons generally do not reflect any concerns about the rated entity’s creditworthiness or the quality of its management.”
1MDB added that Moody’s decision under these circumstances will attempt to balance the informational benefit to market participants from maintaining a credit rating against the resources required to maintain and monitor that credit rating or other business considerations.