MARC has reaffirmed the ratings of WCT Engineering Berhad’s (WCT) Islamic Fixed Rate Serial Bonds of RM100 million at A+ID and 7-year Islamic Commercial Papers/Medium Term Notes Programme of up to RM100 million (Islamic CP/MTN) (collectively known as Islamic Securities or IS) at  MARC-1ID /A+ID with a stable outlook. The ratings reflect WCT’s sustained competitive position in the ...

MARC has upgraded Degem Berhad’s (DeGem) short-term rating and affirmed the long-term rating for its RM50.0 million Murabahah Partially Underwritten Notes Issuance Facility / Islamic Medium Term Notes (MUNIF/IMTN) at MARC-1ID /AID. The ratings carry a stable outlook. The upgrade of the short-term rating reflects increased consideration given to industry and company-specific liquidity charact...

Major Rating FactorsStrengthsFavourable demand fundamentals for industrial cotton gloves;Broad customer base with no significant exposure to any single industry sector; andManufacturing is focused on higher-margin custom-made gloves.Challenges/RisksRising competition from China’s low cost cotton glove manufacturers;Remedying its breach of Finance to Net Tangible Assets Ratio (FNR) covenant; ...

Major Rating FactorsStrengthsFinancial profile remains sound with the potential to improve further in the medium-term;Some 70% to 80% of SPLASH’s revenues is derived from capacity charges which promotes revenue stability; andRobust demand for water provided by SPLASH from ultimate consumers, of which residential customers represent the majority.Challenges/RisksStructural uncertainties in the...

Major Rating FactorsStrengthsDebt repayment ability supported by reliable dividend stream from SPLASH which exhibits a strong financial profile;Some 70% to 80% of SPLASH’s revenues is derived from capacity charges which promotes revenue stability;Debt service reserve, originally pre-funded to RM35 million, provides insulation against uncertain cash flows; andConsiderable refinancing flexibil...

Major Rating FactorsStrengthsDebt repayment ability supported by reliable dividend stream from SPLASH which exhibits a strong financial profile;Some 70% to 80% of SPLASH’s revenues is derived from capacity charges which promotes revenue stability;Shareholders’ capacity and willingness to meet shortfalls in debt service provide insulation against uncertain cash flows; andConsiderable re...

Major Rating FactorsStrengths Predictable earnings and cashflow that derives from contractual tariff payments by creditworthy terminal users; Tariffs are designed to allow for the recovery of costs and an appropriate rate of return; andFavourable operating profile of the independent oil terminal (“IOT”). Challenges/Risks Modest level of financial flexibility; andSusceptibility of the I...

MARC has affirmed the rating of A+ID of Zecon Toll Concessionaire Sdn Bhd’s (“ZTC”) RM60 million Bai-Bithaman Ajil Islamic Debt Securities (“BaIDS”). The rating carries a stable outlook. ZTC’s revenue generating asset is the Tun Abang Salahuddin Bridge in Sarawak.The rating reflects the satisfactory traffic and revenue profile of the bridge relative to debt serv...

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   ...