MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said its
'BBB+/A-2' ratings on Santos Ltd. are unaffected by the company's proposed sale
of 40 percent stake in the Gladstone Liquefied Natural Gas (GLNG) project to
Petroliam Nasional Bhd. (Petronas).
The sale proceeds will provide a timely boost to Santos' capital structure
given the company's higher capital investment over the next few years. Also, the
funds from Petronas, together with current high oil prices will significantly
improve Santos' liquidity position and alleviate the company's emerging
financial pressure following lower production and weaker-than-expected 2007
earnings, S&P said.
The stability of the Santos' rating in the medium term is dependent on the
company's strategy to fund and execute its share of new investments in its
liquefied natural gas (LNG) projects.
TFN.newsdesk@thomson.com
vsr/ssa
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