Moody’s Ratings has affirmed the Prime-1 (P-1) local and foreign currency short-term debt ratings for Clifford Capital Asset Finance Pte Ltd’s $500m commercial paper programme. The affirmation reflects the robust backing of the Singapore government, which guarantees the principal and interest amounts of up to $500m and $50m, respectively.
Clifford Capital, previously known as Bayfront Infrastructure Management Pte Ltd, plays a crucial role in investing and distributing project and infrastructure debt across the Asia-Pacific and Middle East regions. The company was established in conjunction with the Infrastructure Take-Out Facility, sponsored by the Monetary Authority of Singapore. It is 70% owned by Clifford Capital Holdings Pte Ltd, with the remaining 30% held by the Asian Infrastructure Investment Bank.
The guarantee provided by the Singapore government is unconditional and irrevocable, covering payments that may be rescinded or clawed back. It is governed by Singaporean law, which Moody’s deems favourable for guarantee enforcement. Despite lacking an explicit waiver on defences and including a 15-day payment period upon demand notice, Moody’s expects the Singapore government to honour its commitments promptly due to its strong credit standing.
An upgrade of Clifford Capital’s ratings is not feasible as they are already at the highest level. A downgrade is considered unlikely, given the stable outlook on Singapore’s sovereign rating, which would require a significant downgrade of the sovereign rating itself.
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