Wednesday, Jan 08, 2003
MARC has lowered its rating on Teratas Dagang Sdn Bhd’s (TDSB) RM25 Million Murabahah Underwritten Notes Issuance Facility (MUNIF) to MARC-4ID from MARC-3ID. The rating action reflects the negative impact of the delay in securing the necessary approvals from the relevant authorities duly required prior to receiving payments for the land identified for development and commencement of works with regards to the development of the proposed administrative and housing units for Polis DiRaja Malaysia (PDRM) in Larut Matang, Taiping, Perak.
The MUNIF was issued in January 2002 and TDSB is scheduled to make the first redemption of RM8 million on 9 January 2003 as per the Facility Agreement and the related agreements constituting TDSB’s obligations under the said facility. As a result of the delay, TDSB may not be in a position to honour the first scheduled obligation as stipulated, the non-payment of which will constitute an event of default under the relevant provisions of the aforesaid agreements.
The MUNIF was issued in January 2002 and TDSB is scheduled to make the first redemption of RM8 million on 9 January 2003 as per the Facility Agreement and the related agreements constituting TDSB’s obligations under the said facility. As a result of the delay, TDSB may not be in a position to honour the first scheduled obligation as stipulated, the non-payment of which will constitute an event of default under the relevant provisions of the aforesaid agreements.