Wednesday, Jul 17, 2002
The rating of Anjung Bahasa Sdn Bhd’s (ABSB) Al-Bai Bithaman Ajil Islamic Debt Securities (BaIDs) has been downgraded from AA+ to AA- (double-A minus) following negative developments arising subsequent to the issuance of the Temporary Certificate of Fitness (TCF), which have had the effect of moderating the cashflow protection afforded to the bondholders. Nonetheless, the rating continues to reflect a strong and predictable revenue stream and a protective issue structure, which isolates the predetermined monthly payments for the build up of the Finance Service Reserve Account (FSRA); and restricts dividends until a Special Reserve Account (SRA) has been fully funded.
After the issuance of the TCF, Dewan Bahasa dan Pustaka (DBP) contended for the installation of two additional lifts for the tower block. DBP advanced the cost of the two lifts amounting to RM1.2 million. This cost will be deducted from the scheduled payments by DBP over a 12-month period from November 2001 to October 2002. To mitigate the impact on ABSB’s cashflow, its principal shareholder has injected RM350,000 cash into the Revenue Account to provide supplementary funds for maintenance and management works up to October 2002. The Revenue Account is operated solely by the Monitoring Agent. TFM Sdn Bhd, ABSB’s wholly-owned subsidiary set up to carry out the maintenance and management work will make claims from the Revenue Account subject to a predetermined monthly cap, to supplement the maintenance expenses. MARC will continue to monitor the sufficiency of these funds to defray maintenance and management costs and the overall impact on ABSB’s cashflow.
ABSB, a single purpose company, was granted the concession to design, construct and complete a new office complex for 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. DBP, a statutory body wholly owned by the government and established under the DBP Act 1959 to develop the national language, is adjudged to be of low credit risk.
After the issuance of the TCF, Dewan Bahasa dan Pustaka (DBP) contended for the installation of two additional lifts for the tower block. DBP advanced the cost of the two lifts amounting to RM1.2 million. This cost will be deducted from the scheduled payments by DBP over a 12-month period from November 2001 to October 2002. To mitigate the impact on ABSB’s cashflow, its principal shareholder has injected RM350,000 cash into the Revenue Account to provide supplementary funds for maintenance and management works up to October 2002. The Revenue Account is operated solely by the Monitoring Agent. TFM Sdn Bhd, ABSB’s wholly-owned subsidiary set up to carry out the maintenance and management work will make claims from the Revenue Account subject to a predetermined monthly cap, to supplement the maintenance expenses. MARC will continue to monitor the sufficiency of these funds to defray maintenance and management costs and the overall impact on ABSB’s cashflow.
ABSB, a single purpose company, was granted the concession to design, construct and complete a new office complex for 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. DBP, a statutory body wholly owned by the government and established under the DBP Act 1959 to develop the national language, is adjudged to be of low credit risk.