Khazanah's Market-value-based Leverage To Remain At 30-35 Pct - Moody's Ratings

KUALA LUMPUR, Oct 17 (Bernama) -- Moody’s Ratings expects Khazanah Nasional Bhd's market-value-based leverage to remain between 30 per cent and 35 per cent over the next few years.

Since adopting an active investment approach in 2004, Khazanah has grown its portfolio's net asset value at a compound annual growth rate of around five per cent, the rating agency said.

“Khazanah has achieved this growth while maintaining prudent financial policies, including a public leverage target,” Moody's Ratings said in a note today.

The agency also highlighted that the credit strength of the 11 rated government-owned investment holding companies, including Khazanah, collectively controlling nearly US$2 trillion in assets globally as of 2023, generally reflects the creditworthiness of their respective governments.

Nonetheless, it added that the intrinsic credit quality of these companies -- excluding extraordinary government support -- varies significantly due to differences in credit metrics, liquidity, and portfolio composition. 

Moody’s Ratings also pointed out that at least half of Khazanah and Saudi Arabia’s Public Investment Fund portfolios consist of publicly listed investments.

-- BERNAMA