Thursday, Sep 29, 2005
The ratings of Atlan Holdings Berhad’s (Atlan) RM90 Million Murabahah Underwritten Notes Issuance Facility/ Islamic Medium Term Notes (MUNIF/ IMTN) and RM40 million Al’-Bai Bithaman Ajil Islamic Debt Securities (BaIDS) facilities had been affirmed at MARC-2ID and AID (A flat, islamic debt). The ratings affirmation reflects Atlan’s diversified business and good competitive position, which is further strengthen by the recent acquisitions. The ratings are however moderated by any adverse external developments.
Atlan is an investment holding company, with subsidiaries involved in manufacturing and trading of precision mechanical products, tools and dies, duty free retail shops and hospitality.
Atlan’s manufacturing division serves the needs of a wide range of industries such as electrical and electronics, computer, automotive, medical devices and others. Atlan is now the largest and only licensed duty-free operator in between the Malaysian-Thai border on the West Malaysia side, thus monopolising tourist flows through the Padang Besar and Bukit Kayu Hitam entry point.
The recent acquisition process has benefited the Atlan group as reflected in the commendable financial results in FY2005 and FY2004. Currently, the Retail and Trading segment emerged as the main revenue contributor of Atlan followed by the Manufacturing segment. Going forward, there will be good potential underlying the hospitality business as Atlan group is taking over the management of the Blakes Hotel.
Atlan’s debt leverage has increased in FY2005 mainly due to the issuance of the MUNIF/ IMTN and BaIDS, albeit still lower than the covenanted level of 1.5 times. Atlan cash flow protection measures improved during the year and offers sufficient protection to bondholders at current rating level.
Atlan is an investment holding company, with subsidiaries involved in manufacturing and trading of precision mechanical products, tools and dies, duty free retail shops and hospitality.
Atlan’s manufacturing division serves the needs of a wide range of industries such as electrical and electronics, computer, automotive, medical devices and others. Atlan is now the largest and only licensed duty-free operator in between the Malaysian-Thai border on the West Malaysia side, thus monopolising tourist flows through the Padang Besar and Bukit Kayu Hitam entry point.
The recent acquisition process has benefited the Atlan group as reflected in the commendable financial results in FY2005 and FY2004. Currently, the Retail and Trading segment emerged as the main revenue contributor of Atlan followed by the Manufacturing segment. Going forward, there will be good potential underlying the hospitality business as Atlan group is taking over the management of the Blakes Hotel.
Atlan’s debt leverage has increased in FY2005 mainly due to the issuance of the MUNIF/ IMTN and BaIDS, albeit still lower than the covenanted level of 1.5 times. Atlan cash flow protection measures improved during the year and offers sufficient protection to bondholders at current rating level.