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1MDB defends liquidity position after Moody's rating withdrawal
[KUALA LUMPUR] Malaysia's troubled state investment company 1Malaysia Development Bhd defended its liquidity position after Moody's Investors Service withdrew the rating for one of its bonds.
Moody's said Tuesday it withdrew the rating on 1MDB Energy Ltd's 5.99 per cent US$1.75 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 rationalisation plan," the company said in a statement 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.