MARC has placed the AA- rating for Anjung Bahasa Sdn Bhd (ABSB) RM110 million Al-Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) on MARCWatch, with a developing outlook. ABSB a single purpose company, was granted the concession to design, construct and complete a new office complex for Dewan Bahasa dan Pustaka (DBP) on a deferred payment basis, and to undertake the maintenance and management of the building for the 17-year concession period. The 1996 Privatization Agreement between the government, DBP and ABSB created a stable and predictable revenue stream for ABSB, comprising the scheduled monthly payment for the office and car park spaces (representing reimbursement of construction costs) as well as the management and maintenance (M&M) fee, payable monthly in advance by DBP to ABSB.

The MARCWatch, with a developing outlook reflects the potential change in ABSB’s shareholding, the outstanding rectification works to the tower block and podium, and the outstanding Certificate of Completion (“CPC”) to be issued for the 1st to 5th floor. The current shareholders of ABSB, MJO Construction Sdn Bhd and Visage Engineering Sdn Bhd have signed a Share Sale Agreement on 26th November 2002 to dispose of their entire equity interest to a third party. Outstanding rectification works include specific construction work to the podium to be completed for the issuance of the CPC, rectification works on the tower block and auditorium and other finishing works.