SINGAPORE: S&P Global Ratings has assigned its "AAA" long-term issue rating to a drawdown by Temasek Financial (IV) Private Ltd under the company's S$5bil guaranteed medium-term note program.

       The rating agency said on Monday Temasek Holdings (Private) Ltd (AAA/Stable/A-1+) fully, irrevocably, and unconditionally guarantees the proposed notes.

       The proposed Singapore dollar-denominated notes will mature in 2026. Temasek intends to use the net issuance proceeds to fund its ordinary course of business.

       "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," it said.

       The rating on Temasek reflects the company's large, well-diversified, and high-quality portfolio assets; above-average investment capabilities; and minimal leverage.

       "In addition, we see an extremely high likelihood of extraordinary support from the government of Singapore, if needed. Temasek's proportion of unlisted assets weighs on the company's net portfolio characteristics and tempers these strengths," it said.

       As of March 31, 2021, Temasek's net portfolio amounted to S$381bil, with about 55% of liquid and listed assets. The company also had cash and cash equivalents, and short-term investments of S$50.8bil, as well as gross debt of S$17.6bil.

       "The stable rating outlook on Temasek reflects our opinion that the company's close relationship with, and likelihood of extraordinary and timely support from, the government will remain intact over the next 24 months.

       "We also expect Temasek's portfolio concentration of key assets to improve or remain at the current level as the company expands its portfolio," S&P Global Ratings.