SINGAPORE, Feb 9 — S&P Global Ratings has assigned its ‘AAA’ long-term issue rating to a drawdown by Temasek Financial (I) Ltd under its US$25 billion guaranteed global medium-term note programme.
Temasek Holdings (Private) Ltd fully, irrevocably, and unconditionally guarantees the proposed notes.
The proposed euro-denominated notes of four and 10 years will mature in 2027 and 2033, respectively.
Temasek intends to use the net issuance proceeds to fund its ordinary course of business.
“We rate the proposed senior notes the same as our long-term issuer credit rating on Temasek because we do not view the company’s capital structure as having any material subordination risks,” said S&P Global Ratings in a statement issued here.
The rating on Temasek reflects the company’s large, well-diversified, and high-quality portfolio assets; above-average investment capabilities; and minimal leverage, it said.
“In addition, we see an extremely high likelihood of extraordinary support from the government of Singapore, if needed,” the rating house said.
S&P Global Ratings said Temasek’s proportion of unlisted assets weighs on the company’s net portfolio characteristics and tempers these strengths.
As of March 31, 2022, Temasek’s net portfolio amounted to S$403 billion, with about 48 per cent of liquid and listed assets.
The company also has cash and cash equivalents, and short-term investments of S$38.4 billion, as well as a gross debt of S$21.8 billion.
“The stable rating outlook on Temasek reflects our opinion that the company’s close relationship with, and likelihood of extraordinary and timely support from the government, will remain intact.
The ratings agency said its stable outlook is also reflective of its outlook on Singapore’s sovereign rating.
“In addition, we do not expect Temasek’s concentration of key assets to increase even as the company continually expands its portfolio,” the independent credit ratings provider said. — Bernama
