27 September 2002 – The Ratings Agency of Malaysia (RAM) has confirmed its debt ratings of state power company Tenaga Nasional Bhd.(TNB).
The rating agency cited TNB’s monopolistic position in the transmission and distribution of electricity in Peninsular Malaysia and Sabah, its position as the national utility company in Malaysia as well as its strategic importance to the country’s economic development.
RAM said “proper management of its large debt exposure is highly critical” in view of TNB’s highly leveraged balance sheet, with a total debt of RM28.7 billion ($7.6bn) as at end-May 2002. RAM also believed that the gas shortage since early 2002, which has been affecting the power industry, is temporary and should iron itself out over the intermediate term.