Wednesday, Jun 18, 2003
MARC has downgraded the rating of Reliance Pacific Berhad (RPB) RM100 million Redeemable Secured Bonds from A- to BBB+.
The downgrade reflects the current weak and uncertain operating environment of the travel and hotel industry following the SARS outbreak and threat of terrorism and the weakened financial performance of RPB. The group’s consolidated Income Statements recorded losses for the past two years. Operational cash flow is in deficit due to high borrowing costs and heavy working capital requirements. Moving forward, RPB has recently undertaken several cost reduction and demand stimulation measures, in the hope of improving its cash flow and profit figures.
MARC will continue to closely review the RPB group’s financial position as part of its ongoing surveillance exercise.
The downgrade reflects the current weak and uncertain operating environment of the travel and hotel industry following the SARS outbreak and threat of terrorism and the weakened financial performance of RPB. The group’s consolidated Income Statements recorded losses for the past two years. Operational cash flow is in deficit due to high borrowing costs and heavy working capital requirements. Moving forward, RPB has recently undertaken several cost reduction and demand stimulation measures, in the hope of improving its cash flow and profit figures.
MARC will continue to closely review the RPB group’s financial position as part of its ongoing surveillance exercise.