Moody’s Ratings has affirmed the Aa1 issuer and senior unsecured medium-term note programme ratings for PSA International Pte Ltd (PSAI) and its subsidiary, PSA Treasury Pte Ltd. The outlook for these ratings remains stable, underscoring the company’s robust financial profile and strategic importance to Singapore’s logistics and trading hub status.
The affirmation considers PSAI’s Baseline Credit Assessment (BCA) of a3 and the high likelihood of support from its parent, Temasek Holdings, which is wholly owned by the Singapore government. This support is crucial given PSAI’s role in consolidating Singapore’s position as a global logistics centre. PSAI’s diversified portfolio and strong market positions globally, particularly through its subsidiary PSA Corporation Limited, contribute to its resilience and profitability.
However, PSAI faces challenges from higher US tariffs and evolving trade policies, which may slow throughput growth in 2025. Despite these uncertainties, PSAI’s ports, especially in Singapore, are pivotal in adjusting global trade flows, providing a buffer against potential negative impacts.
Financially, PSAI’s adjusted funds from operations to debt ratio is expected to moderate but remain supportive of its rating. The company’s liquidity is bolstered by substantial cash holdings and a flexible capital investment programme, including the Tuas mega port development.
An upgrade of PSAI’s ratings is unlikely in the near term due to tariff uncertainties. Conversely, a downgrade could occur if shareholder support diminishes or if PSAI’s financial metrics weaken significantly. PSA Treasury’s ratings are directly linked to PSAI’s ratings due to existing guarantees.
“`
