MARC has placed the ratings of Top Glove Corporation Bhd’s (Top Glove) Islamic debt securities of up to RM100 million Murabahah/Ijarah Commercial Papers (CP) Programme and up to RM100 million Murabahah/Ijarah Medium Term Notes (MTN) Programme on MARCWatch with a developing outlook due to revelations that approximately 2,000 of the company’s foreign workforce have not had their work permits renewed on time. The company maintains that all these workers were taken in with proper documents. Top Glove has agreed to bear all penalties relating to the above, the quantum of which has not been ascertained as yet. The authorities have however allowed operations to continue uninterrupted and the company has represented that the matter will be resolved in approximately two weeks. In August 2005, the CP and MTN programme were accorded ratings of MARC-1ID and AA-ID (double A minus) respectively. 

MARC will be closely monitoring developments over the next two weeks and will review the impact of these developments on Top Glove’s financial performance and current rating.  Any rating implications arising therefrom will be advised in due course.