RAM RATINGS - BUSINESS TIMES (21/5/05)

24/05/2005

Rating Agency Malaysia (RAM) has reaffirmed the AA1/P1 ratings assigned to Tenaga Nasional Berhad’s debt issues, with a stable outlook. The ratings reflect Tenaga’s entrenched position as the national utility company in Malaysia as well as its strategic importance to the country’s economic development. RAM has also reaffirmed the rating of Sandakan Power Corp Sdn Bhd’s (SPC) RM65 million fixed rate derail bonds at AA3, with a stable outlook. The reaffirmation of the rating continues to be supported by the absence of demand risk by virtue of the 2-tier tariff structure under the power purchase agreement and its strong debt-servicing ability. SPC is an independent power producer, which owns and operates a 32MW diesel-fuelled power plant in Batu Sapi, Sandakan.