PETRONAS International receives first A3 issuer rating

Moody’s Ratings has rated PETRONAS International Corporation Ltd (PICL) for the first time, assigning an A3 issuer rating and stable outlook. The agency cited the company’s strategic role within parent Petroliam Nasional Bhd (PETRONAS), alongside its contribution to group output and earnings.

According to Moody’s, parental supervision, coordinated cash management and access to group support underpin the rating. Rachel Chua, vice-president at Moody’s Ratings, said PICL’s credit strength on a standalone basis was estimated in the mid-to-low Baa range, reflecting the scale and cash-generating capacity of its overseas oil and gas business.

PICL handles PETRONAS’ international exploration and production activities, together with liquefied natural gas (LNG) marketing and trading. PETRONAS determines strategy for overseas operations, while PICL implements it. In 2025, PICL represented more than 20% of group production and assets; its share of reserves exceeded 40%.

Moody’s said PICL benefits from group financing, a central treasury and an umbrella credit facility. PETRONAS has supplied equity through non-interest-bearing perpetual redeemable preference shares (RPS), extended shareholder loans and guaranteed most external borrowings. PICL’s outstanding RPS stood at US$20.6 billion as at December 2025, alongside US$4.7 billion in shareholder advances.

The agency identified carbon transition as PICL’s main environmental exposure, with decarbonisation pressures potentially tightening standards and reducing longer-term oil and gas demand. It also cited operational health and safety risks, reliance on PETRONAS for financial and risk decisions, concentrated ownership and limited transparency associated with private ownership.