MARC has affirmed its rating on Assar Chemicals Sdn Bhd’s (ACSB) RM150 million Serial Sukuk Musyarakah (Sukuk) at AAAIS. The outlook on the ratings has been revised to negative from stable. The outlook revision reflects MARC’s concern over ACSB’s forthcoming August 2011 Sukuk maturity which is likely to exceed its cash reserves and expected free cash flow. The affirmed rating inc...

MARC has affirmed its long-term rating on Assar Chemicals Sdn Bhd’s (ACSB) RM150 million Serial Sukuk Musyarakah (Sukuk) at AAAIS. The outlook on the rating is maintained at stable. MARC notes the significant transfers of cash to ACSB’s related companies in the past two financial years which predisposes ACSB to higher liquidity risk and has reduced headroom with respect to its FSCR cov...

MARC has affirmed its long-term rating on independent oil terminal (IOT) owner, Assar Chemicals Sdn Bhd’s (ACSB) RM150 million Serial Sukuk Musyarakah (Sukuk) at AAAIS. The outlook on the rating is stable. The affirmed rating reflects the fundamentals of the underlying oil terminal project, underpinned by a 30-year agreement through 2037 with terminal users of superior credit standing. Contr...

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 AAAIS on Assar Chemicals Sdn Bhd’s (“ACSB”) RM150 million Serial Sukuk Musyarakah (“Facility”). Proceeds from the Facility were utilized towards repayment of a bridging loan and to part finance the construction costs of the Independent Oil Terminal (“IOT”). The rating reflects the secured demand from the credible offtakers...

MARC has assigned a rating of AAAIS to Assar Chemicals Sdn Bhd’s (“ACSB”) proposed issuance of RM150 million Serial Sukuk Musyarakah (“Facility”). Proceeds from the Facility will be applied towards repayment of the outstanding amount under the RM100.0 million bridging loan granted by RHB Sakura Merchant Bankers Berhad to ACSB pending issuance of the Facility and par...