Monday, Jul 17, 2000
MARC today placed the DID rating of MOCCIS Trading Sdn. Bhd’s (MTSB) RM50 million Al-Bai Bithaman Ajil Debt Securities on MARCWatch with developing implications.
On 24 June 2000, MTSB had failed to make a scheduled payment of RM2.9 million on its maturing Secondary Notes. Upon the receipt of notification from the Trustee that an event of default had occurred pursuant to Clause 7(a) of the Trust Deed, MARC downgraded MTSB’s debt rating to DID for failure to make timely scheduled payment on the instrument issued under the Islamic financing contract(s). MTSB settled the amounts in two payments of RM1 million on 28 June and the balance of RM1.9 million on 4 July 2000.
MARC’s review of the rating is continuing in order to assess MTSB’s ability to meet its future debt service obligations on a timely basis. The MARCWatch listing will be resolved at the conclusion of this review. MTSB provides financing for a wide range of consumer products, mainly to civil servants.
On 24 June 2000, MTSB had failed to make a scheduled payment of RM2.9 million on its maturing Secondary Notes. Upon the receipt of notification from the Trustee that an event of default had occurred pursuant to Clause 7(a) of the Trust Deed, MARC downgraded MTSB’s debt rating to DID for failure to make timely scheduled payment on the instrument issued under the Islamic financing contract(s). MTSB settled the amounts in two payments of RM1 million on 28 June and the balance of RM1.9 million on 4 July 2000.
MARC’s review of the rating is continuing in order to assess MTSB’s ability to meet its future debt service obligations on a timely basis. The MARCWatch listing will be resolved at the conclusion of this review. MTSB provides financing for a wide range of consumer products, mainly to civil servants.