Following the breakdown of a switchgear in the Kapar Power Station on 13 January 2005 that had brought four states in the Southern region of the Peninsula, Putrajaya and parts of Kuala Lumpur to a standstill in a five-hour power blackout, MARC will be evaluating the operational as well as financial impact on Tenaga Nasional Berhad (TNB) and Kapar Energy Ventures Sdn Bhd (KEV) pending the results of the independent study conducted on the cause(s). TNB’s various Private Debt Securities carry the long-term and short-term ratings of AA+ and MARC-1 respectively whilst KEV’s Bai-Bithaman Ajil Islamic Debt Securities carry a rating of AA+ID.

The management of TNB revealed that the outcome of the independent study is expected to be available by end of this week. The financial impact on both TNB and KEV is unable to be established at this juncture until the completion of the investigations.

MARC will continue to monitor developments on the issue and assess the impact on the ratings accordingly.