Friday, November 9th, 2018

 

US stocks drops on China concerns, oil slide

NEW YORK, Nov 9 — US stocks fell today, with shares of technology, energy and industrial companies bearing the brunt of a selloff, as weak Chinese data and declines in oil prices raised concerns about global growth. As investors shunned growth…


Global growth worries set to weigh on Wall Street at open

NEW YORK, Nov 9 — US stocks were set to fall at the open today, as a batch of weak Chinese data raised concerns about global growth a day after the Federal Reserve hinted at gradual tightening of borrowing costs. The news gave investors a reason…


Dollar climbs toward 16-month high after hawkish Fed guidance

LONDON, Nov 9 — The dollar rose towards a 16-month high today after the US Federal Reserve kept interest rates steady and reaffirmed its monetary tightening stance, cueing up investors for a rate hike in December. The greenback fell broadly…


Brent oil slides under US$70

LONDON, Nov 9 — Brent crude oil sank today to a seven-month low under US$70 (RM332) on surging US energy stockpiles ahead of a weekend meeting of major oil producing nations. In London morning deals, benchmark oil contract Brent North Sea crude…


UK economy picks up but slowdown looms before Brexit

LONDON, Nov 9 — Britain’s economy has grown at the fastest pace in nearly two years as strong exports and solid household spending offset slumping business investment, data showed today awaiting a Brexit deal. Gross domestic product climbed by…


Moody’s affirms Ambank’s (P)Ba2 euro MTN with stable outlook

KUALA LUMPUR, Nov 9 — Moody’s Investors Service has affirmed a provisional (P)Ba2 foreign currency rating for AmBank (M) Bhd’s US$2 billion (RM9.4 billion) Euro Medium Term Note (MTN) Programme with a stable outlook. “Ambank’s rating is…


Asian markets sink at end of healthy week, dollar up

HONG KONG, Nov 9 — Asian markets turned lower today as investors took their foot off the pedal at the end of a broadly positive week, while the dollar strengthened after the Federal Reserve flagged more interest rate hikes down the line. Energy…


Moody’s downgrades Petronas LNG’s ratings outlook to negative

PETALING JAYA: Moody's Investors Service has downgraded Petronas LNG Ltd's (PLL) ratings outlook to “negative” from “stable”, following the same outlook revision for its parent company Petroliam Nasional Bhd’s (Petronas) yesterday.

At the same time, the rating agency has affirmed PLL's A3 foreign and local currency issuer ratings.

Moody's said the changes reflects its negative outlook on Petronas' ratings and its expectation of PLL's continued strong support from and linkages with its ultimate parent.

PLL is 100%-owned by Petronas, which is in turn wholly-owned by the government.

Moody’s said given the negative ratings outlook, a ratings upgrade is unlikely and it will revise PLL's ratings outlook to stable from negative only if Petronas' ratings outlook is stabilised.

It said that PLL's ratings will be downgraded if: Petronas' rating is downgraded; there is a decrease in Petronas' ownership of PLL; there is a reduction in Petronas' supervision of and operational and financial support to PLL; or there is a material increase in PLL's risk appetite.

PLL's ratings were assigned using a top down approach by evaluating the company's full ownership by Petronas, its strong operational and financial integration with Petronas, and the willingness and ability of Petronas to extend support to PLL in an event of distress.

Meanwhile, Moody's assistant vice president and analyst Rachel Chua said PLL's A3 ratings are positioned two notches below the A1 ratings of its ultimate parent.

She noted that PLL enjoys ongoing liquidity support from Petronas and it can draw from Petronas' umbrella credit facility for liquidity management, adding Petronas has continued to support PLL financially through cash injections of almost $400 million over the past three years.

“Petronas' support for PLL extends beyond financial assistance. Petronas also provides PLL with significant management support and oversight, including monthly reporting on risk and governance to a committee chaired by Petronas.

“PLL also has an integrated treasury function with Petronas, where its cash is held centrally by Petronas and cash flow requirements are shared with its parent,” she added.


Sapura Energy sells 50% stake in Sapura Upstream for RM4.06 billion

KUALA LUMPUR: Sapura Energy Bhd today announced the disposal of a 50% stake in Sapura Upstream Sdn Bhd to Austria's OMV Aktiengesellschaft for US$975 million (RM4.06 billion).

This was based on Sapura Upstream's enterprise value of up to US$1.6 billion (RM6.66 billion) comprising an equity value of up to US$1.25 billion and debt of US$350 million.

OMV will pay US$540 million for the 50% stake by subscribing to newly issued shares. The parties also agreed to refinance the existing inter-company debt of US$350 million.

In addition, the parties have agreed to additional consideration of up to US$85 million based on certain occurrences mainly linked to the resource volume in Block 30, Mexico at the time of taking the final investment decision.

The transaction will result in Sapura Energy receiving US$975 million (RM4.06 billion), including the repayment of US$350 million (RM1.46 billion) owed by Sapura Upstream to Sapura Energy.

Sapura Energy shares closed 4.2% higher at 37.5 sen with 73.24 million shares changing hands.


2019 Budget strengthens KL’s position as regional hub for MNCs, says InvestKL CEO

KUALA LUMPUR, Nov 9 — The 2019 Budget proposal will reinforce Kuala Lumpur’s position as a business, innovation and talent hub for large multinational corporations (MNCs), said InvestKL Chief Executive Officer (CEO) Datuk Zainal Amanshah. Some…