Bangkok--16 May--Standard & Poor's Standard & Poor's Ratings Services today revised its outlook on the foreign currency corporate credit ratings for Petroliam Nasional Bhd.'s (Petronas) and Telekom Malaysia Bhd. to stable from positive. At the same time, Standard & Poor's affirmed all the credit ratings on the two companies. The ratings on Petronas (foreign currency A-/Stable/--; local currency A+/Stable/--) are highly influenced by Malaysia's sovereign rating due to the company's full government ownership and Petronas' role in managing the country's oil and gas sector and implementing the national energy policy. As a government supported entity, the corporate credit ratings on Telekom Malaysia (foreign currency A-/Stable/--; local currency A/Stable/--) are linked to the country's sovereign ratings. A significant reduction in government ownership would likely weaken this linkage, and result in downward pressure on the corporate credit ratings. The company's strong business position and modest financial risk profile allowed it to preserve its credit rating level despite the spin-off of its cellular and international operations to TM International Bhd. (not rated) recently. The outlook revisions follow today's similar action taken on the sovereign credit ratings on Malaysia (foreign currency A-/Stable/A-2; local currency A+/Stable/A-1) (see "Malaysia Outlook Revised To Stable From Positive On Political Uncertainties; Ratings Affirmed," published May 15, 2008, on RatingsDirect). Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Credit Ratings Search. Media Contact: David Wargin, New York (1) 212-438-1579, [email protected] Analyst Contacts: Anshukant Taneja, Singapore (65) 6239-6340 Wee Lee Cheng, Singapore (65) 6239-6353 Manuel Guerena, Singapore (65) 6239-6332