Tuesday, Nov 09, 2004
MARC has reaffirmed the ratings of Perak-Hanjoong Simen Sdn Bhd’s (PHS) RM698 million Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) Tranche I (RM370 million) at AAAID(bg) (Triple A, Islamic Debt, Bank Guaranteed), Tranche II (RM50 million) AID(bg) (Single A, Islamic Debt, Bank Guaranteed) and Tranche IV (RM168 million) at A+ID(bg) (Single A Plus, Islamic Debt, Bank Guaranteed) and upgraded the rating of Tranche III (RM80 million) to AA-ID(bg) (Double A Minus, Islamic Debt, Bank Guaranteed). The reaffirmations and upgrade reflect the strength of the irrevocable unconditional guarantees provided by a consortium of banks based upon the weak link approach.
For the non-guaranteed tranche (Tranche V), MARC continues to place the rating on watch as the Company has requested from the bondholders to grant an indulgence for the repayment of the principal and profit due and is working with the new shareholder on a scheme to regularize the Company’s deteriorating financial position.
MARC foresees the company to continue incurring loss for the current financial year given the softening demand for cement particularly in the first half of 2004 attributed to the slowdown of construction works due to the shortage in steel supply and the continued high financial charges.
For the non-guaranteed tranche (Tranche V), MARC continues to place the rating on watch as the Company has requested from the bondholders to grant an indulgence for the repayment of the principal and profit due and is working with the new shareholder on a scheme to regularize the Company’s deteriorating financial position.
MARC foresees the company to continue incurring loss for the current financial year given the softening demand for cement particularly in the first half of 2004 attributed to the slowdown of construction works due to the shortage in steel supply and the continued high financial charges.