1MDB defends liquidity position after Moody's withdraws rating for its US$1.75b bonds

Malaysia's 1MDB has defended its liquidity position after Moody's Investors Service withdrew the rating for one of its bonds.
Malaysia's 1MDB has defended its liquidity position after Moody's Investors Service withdrew the rating for one of its bonds.PHOTO: AFP

KUALA LUMPUR (BLOOMBERG) - Malaysia's troubled state investment company 1Malaysia Development Bhd (1MDB) defended its liquidity position after Moody's Investors Service withdrew the rating for one of its bonds.

Moody's said on Tuesday (June 7) it withdrew the rating on 1MDB Energy Ltd's 5.99 per cent US$1.75-billion (S$2.37 billion) debt "for its own business reasons", according to a statement, pointing to its website for its policy on such moves.

"1MDB reiterates that its liquidity position is strong and the company remains focused on execution of its successful rationalization plan," the company said in a statement on Wednesday.

The rating removal came two weeks after 1MDB reiterated to bondholders its commitment to resolving a dispute with Abu Dhabi's sovereign-wealth fund that led to a debt default in April.

1MDB also said the withdrawal was undertaken without a downgrade in Moody's Aa2 rating for the notes and the securities still have an AA rating from S&P Global Ratings.