S&P Global Ratings has awarded a ‘AAA’ long-term issue rating to the senior unsecured notes proposed by Temasek Financial (I) Limited, under its $25 billion guaranteed global medium-term note programme. Temasek Holdings (Private) Limited fully guarantees these notes, which are set to mature in August 2027. The proceeds will support Temasek’s regular business operations.
The rating reflects Temasek’s robust portfolio, characterised by its diversity and high quality, alongside its minimal leverage. S&P highlights the company’s strong investment capabilities and the potential for extraordinary support from the Singapore government if necessary. “We rate the proposed senior notes the same as our long-term issuer credit rating on Temasek because we do not view the company’s capital structure as having any material subordination risks,” S&P stated.
As of 31 March 2025, Temasek’s net portfolio was valued at S$434 billion, with 51% in liquid and listed assets. The company also reported cash and cash equivalents of S$57.8 billion and gross debt of S$20.7 billion. Despite an increase in unlisted assets, S&P considers the risk of Temasek needing to liquidate these assets for debt repayment to be remote.
The stable outlook for Temasek is supported by its close ties with the Singapore government and the expectation that its portfolio will maintain investment-grade quality. This outlook aligns with the stable rating of Singapore’s sovereign credit.
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