KUALA LUMPUR (Oct 30): Tenaga Nasional Bhd's latest-reported full-year results are in line with Moody's Investors Service's expectation and continue to support Moody's Tenaga A3 senior unsecured ratings.

Moody's said in a statement today the outlook on Malaysia state-controlled utility Tenaga's rating is stable. Last week, Tenaga said net profit fell to RM6.9 billion in financial year ended Aug 31, 2017 from RM7.37 billion a year earlier.

Today, Moody's said: "We expect the earnings growth for Tenaga over next 2-3 years to be driven by the commissioning of 3GW coal generation capacity and a 50MW solar project."

"The stable outlook reflects Moody's expectation that Tenaga will maintain its dominant position in Malaysia's power sector and that there will be no material adverse changes in the regulatory environment in the near to medium term. Given our expectation of high government support, Tenaga's rating is resilient to a weakening in its financial fundamentals," Moody's said.

At Bursa Malaysia, Tenaga shares settled at RM14.76 at 12:30pm for a market value of RM84.77 billion. The stock saw some one million shares traded.