Moody’s Ratings has reaffirmed the Aaa long-term issuer rating and aaa Baseline Credit Assessment (BCA) of Temasek Holdings, maintaining a stable outlook. This decision reflects Temasek’s strong credit quality, bolstered by consistent dividend income and a substantial, high-quality investment portfolio.
Rachel Chua, a Moody’s Vice President and Senior Analyst, highlighted that Temasek’s major investee companies possess strong investment-grade credit qualities.
Temasek is expected to uphold a conservative financial profile over the next 12 to 18 months, with net debt to market value of its portfolio assets, excluding cash, remaining below 5% and funds from operations interest coverage above 15 times.
The company, wholly owned by the Singapore Government through the Minister for Finance, maintains a net cash position as of March 2025.
Despite its government ownership, Temasek operates independently, with over half of its portfolio denominated in Singapore dollars and 27% of its assets based in Singapore. This alignment with government interests supports its Aaa rating. The company’s excellent liquidity, with substantial cash reserves and liquid securities, ensures strong debt service coverage, mitigating potential cash flow volatility.
Moody’s notes that Temasek’s ratings benefit from its 100% government ownership, reflecting high support and dependence. The stable outlook anticipates that Temasek will continue its prudent investment and funding strategies. However, any aggressive investments or deterioration in cash resources could impact its BCA. The rating, being Aaa, cannot be upgraded further.
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