Thursday, Oct 20, 2005
MARC has lifted the Rating Watch (with a developing outlook) on Stenta Films (Malaysia) Sdn Bhd’s (“Stenta”) RM90 million Murabahah Notes Issuance Facility (“MUNIF”). Simultaneously, MARC has also reaffirmed the rating of MARC-3ID assigned to the MUNIF.
The rating decision is based upon the approval from the Securities Commission (“SC”) and Noteholders on the revision in the reduction schedule of the MUNIF; which places Stenta in a better position to fulfil its obligation under the MUNIF. To recap, the high raw material (petroleum based resins) prices reflecting the uptrend in oil prices had affected the profitability and cash flow position of Stenta which consequently led to the revision in the reduction schedule.
The rating decision is based upon the approval from the Securities Commission (“SC”) and Noteholders on the revision in the reduction schedule of the MUNIF; which places Stenta in a better position to fulfil its obligation under the MUNIF. To recap, the high raw material (petroleum based resins) prices reflecting the uptrend in oil prices had affected the profitability and cash flow position of Stenta which consequently led to the revision in the reduction schedule.