S&P affirms AAA-rating for Temasek Financial's medium-term notes program

Company's business risk profile assessed as 'excellent'; financial risk profile to be 'minimal'

Standard & Poor has affirmed AAA-rating for Temasek Financial’s guaranteed global medium-term notes (MTN) program and for the notes issued under the program. 

“We assess the company's stand-alone credit profile (SACP) as 'aaa'. We assess the company's business risk profile to be "excellent" and its financial risk profile to be "minimal" as defined in our criteria,” said the rating agency in a news release.

Singapore-based Temasek Financial has increased the size of the MTN program to US $ 15 billion from US $ 10 billion earlier. The outstanding under the MTN program now stands at US $ 9.1 billion. 

“The 'AAA' corporate credit rating further reflects our view of an "extremely high" likelihood that the government of Singapore will provide timely and sufficient extraordinary support to Temasek in the event of financial distress. The rating would only weaken if we lower the SACP to 'a' or below, which we currently view as unlikely,” the release further added.

S&P said that Temasek’s major investments had strong business risk profiles with steady and sustainable cash flows. The company’s SACP is indicative of good liquidity, strong access to capital markets and good credit quality of its diversified portfolio.

S&P views the company’s minimal leverage as a key strength as Temasek has been in a net cash position since 2004. The rating agency defines leverage as debt less cash and cash equivalents and short-term investments.