Temasek's triple A rating backed by strong credit profile, high-quality portfolio: Moody's

Moody's Investors Service noted that Temasek Holdings has been in a net cash position since fiscal 2008.
Moody's Investors Service noted that Temasek Holdings has been in a net cash position since fiscal 2008.PHOTO: TEMASEK HOLDINGS

SINGAPORE - Moody's Investors Service on Thursday (March 7) said that Temasek Holdings' triple A credit rating is supported by its strong fundamental credit profile, steady and recurring dividend income, and large and high-quality investment portfolio.

In its latest periodic review of the Singapore government investment firm's credit rating, Moody's this was "further underpinned by its low market value-based leverage at the holding company level and its excellent liquidity profile."

It noted that Temasek has been in a net cash position since fiscal 2008 and Moody's expects the company will maintain its sizeable reserve of cash and liquid securities.

Moody's added that as a government-related issuer, Temasek's ratings also benefit from its 100 per cent government ownership through the Minister for Finance, although the company's baseline credit assessment, the measure of its standalone credit quality, is currently also aaa.