MARC has received confirmation from the facility agent, Abrar Discounts Berhad, that Ambang Sentosa Sdn. Bhd. (ASSB) is not able to make payment for the secondary notes of RM272.0 million Class B and RM226.0 million Class C Al-Bai Bithaman Ajil Islamic debt securities (BaIDs) amounting to RM8.84 million and RM7.345 million respectively; and the primary notes of Class B BaIDs which falls due on 28th July 2006 due to insufficient funds in the BaIDS Redemption Account.  Based on confirmation from the facility agent, as at 29th July 2006, the balances in the BaIDS Redemption Account, Expense Reserve Account, Escrow Account 1, Escrow Account 2 and Escrow Account 3 amounted to RM2.66 million, RM1.80 million, RM41.36 million, RM17.76 million and RM0.56 million respectively.  Due to ASSB’s failure to meet the primary and secondary payments due, the Class B and C BaIDS are downgraded from CID to DID. 

MARC had downgraded both of ASSB’s RM272.0 million Class B and RM226.0 million Class C BaIDS from BBB+ID and BBBID respectively to CID on 19th June 2006 with the downgrades premised on low balances in the designated accounts brought about by prolonged construction delays experienced at the Taman Puncak Jalil development resulting in significantly lower progress receipts compared to projections; and the high degree of uncertainty on ASSB’s ability to refinance the existing BaIDS prior to the scheduled maturity date of Class B BaIDS.