MARC has reaffirmed the short and long term ratings of Mines Resort Berhad’s (MRB) Bank Guaranteed Commercial Papers and Bank Guaranteed Serial Bonds at MARC-1(bg) and AAA(bg) respectively. The reaffirmed ratings reflect the strength of an unconditional and irrevocable guarantee provided by Malayan Banking Berhad (Maybank). The stable ratings outlook mirrors that of Maybank’s public in...

Major Rating FactorsStrengths Strong cash flows generated under a 21-year power purchase agreement (PPA) Declining debt leverage and reducing debt service burden Challenges/Risks High maintenance costs of the plant’s enginesProspect of lower revenue and cash flows with the reduction in capacity payment (CP) effective 31 October 2007 as provided under the PPA. Rationale   ...

The rating of AAAID (Islamic Debt) assigned to MISC Berhad’s (“MISC” or “the Group”) up to RM2.5 billion Islamic Medium Term Notes (“MTN”) Programme reflects the Group’s solid operating fundamentals; its dominant position in the Malaysian shipping industry particularly the liquefied natural gas (“LNG”) segment; extended geographic footpri...

MARC has reaffirmed the rating of Special Port Vehicle Bhd’s (SPV) RM1,310.0 million nominal amount asset-backed serial bonds facility at AAA.  The rating carries a stable outlook. SPV is a special purpose entity established with the sole purpose of issuing the asset-backed serial bonds, the proceeds of which were used to acquire future receivables (including interest) amounting to RM1,...

MARC has reaffirmed Kapar Energy Ventures Sdn Bhd’s (KEV) RM3,402 million Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) rating at AA+ID.  The rating carries a stable outlook.  The rating principally reflects the creditworthiness of Tenaga Nasional Bhd (TNB), its off-taker under a 25-year power purchase agreement (PPA), and as majority shareholder.  Under the PPA, KE...

Major Rating FactorsStrengthsPredominant position in local cable industryHealthy liquidity and demonstrated ability to generate cash flows in excess of capital expenditure. Challenges/RisksParticipation in cyclical, price competitive, and capital intensive cable industry.A high degree of industry and customer concentrationRelatively high debt service costsPotential significant cash outlay on its s...

MARC has affirmed Boon Koon Group Berhad’s (‘BKGB’ or the ‘Group’) RM100 Million Islamic Commercial Papers/ Medium Term Notes (ICP/MTN) ratings at AID / MARC-2. The rating outlook is stable. The rating affirmation primarily reflects the Group’s leading position in the domestic rebuilt commercial vehicle industry, the industry’s positive growth prospectives...

Major Rating FactorsStrengths Tier One auto parts vendor with wide product range for national and foreign marques;Increased regional presence, particularly in Thailand and Indian markets; andLow gearing with sizeable unutilized banking facilities. Challenges/RisksHeavy reliance on sales of national automakers, PROTON and PERODUA;Stiff competition in the domestic automotive industry, and consequent...

MARC has assigned ratings of AAAID(cg)/MARC-1ID(cg) to Tesco Stores (Malaysia) Sdn Bhd’s (“Tesco Malaysia”) Proposed Islamic Notes Issuance Programme and AAA(cg)/MARC-1(cg) to Tesco Malaysia’s Proposed Conventional Notes Issuance Programme with a combined limit of RM3.5 billion. The ratings are underpinned by guarantees extended by Tesco PLC to Tesco Malaysia’s ...

MARC has assigned a rating of A to Handal Offshore Services Sdn Bhd’s (“Handal” or the “Company”) RM50 million Medium Term Notes Programme (“MTN Programme”). The rating carries a stable outlook. Handal is a full line offshore crane manufacturing and service company specializing in the production of offshore pedestal mounted cranes for the oil and gas (&ldq...