After the credit ratings agency Moody’s Investor Services withdrew its rating on a 1MDB-issued bond, the state investment firm pointed out that the bond still benefits in ratings from another agency.

This pertains to the US$1.75 billion (RM7.12 billion) bond with fixed rate of 5.99 percent, which was issued through 1MDB Energy Limited and is due in 2022.

In a statement today, 1MDB said the bond still has an ‘AA’ rating from the agency Standard and Poor’s, despite Moody's withdrawal.

In addition, it pointed out that the withdrawal was done without any revision to its ‘Aa2’ rating, which means it was still valid as of the time of the withdrawal yesterday.

“1MDB reiterates that its liquidity position is strong and the company remains focused on execution of its successful rationalisation plan,” it said.

The company was referring to Moody's announcement yesterday that it is withdrawing its ‘Aa2’ rating for "its own business reasons".

Moody's policy document on credit rating withdrawals states that a withdrawal means the agency would no longer rate something that is previously rated – in this case the 1MDB Energy bond.

It says that the agency would adjust its ratings prior to its withdrawal if this is "appropriate and feasible".

When Moody's withdraws its rating for business reasons, the document states, this refers to its decisions and not that of the debt obligator.

“Moody's business reasons generally do not reflect any concerns about the rated entity’s creditworthiness or the quality of its management.

“Moody's decision to withdraw a rating under these circumstances will attempt to balance the benefit to market participants from maintaining a credit rating against the resources required to maintain and monitor that credit rating or other business considerations,” it says.

The US$1.75 billion 5.99 percent bond is co-guaranteed by the UK-based International Petroleum Investment Company (IPIC), along with another US$1.75 billion 5.75 percent bond issued through 1MDB (Langat) Ltd.

IPIC had claimed that 1MDB defaulted on interest payments for the two bonds. It ultimately paid the interest itself, but said it would demand compensation from the Malaysian government, which is 1MDB’s sole shareholder.

1MDB said it is in dispute with IPIC, while maintaining that it has the funds to make the interest payments.