In addition, MARC has extended the MARCWatch Negative on Stenta Films (Malaysia) Sdn Bhd (Stenta)’s MARC3_ID rating in respect of its RM90 million Murabahah Notes Issuance Facility (MUNIF) to reflect the abovementioned developments. Jana Niaga Sdn Bhd’s RM100 million Murabahah Notes Issuance Facility (MUNIF) MARC-3_ID rating also continues to be maintained on MARCWatch Developing.

The rating actions follow Abrar’s tender abortion announcements over BNM’s Fully Automated System for Tendering (FAST) in relation to the commercial paper programmes of Stenta, Pembinaan Mitrajaya and Evermaster. Abrar Discount Berhad (Abrar) is both the facility agent and underwriter for the commercial papers issued by Pembinaan Mitrajaya and Stenta, and facility agent in respect of Intelbest’s MUNIF. The latter is underwritten by RHB Bank Berhad. The reason cited for the tender abortions was that Abrar has been instructed by BNM to cease operations.

MARC is concerned that the roll-over of the commercial papers at their respective maturities may be affected by the closure of Abrar, giving rise to refinancing risk issues. MARC will continue to monitor the resolution of Abrar by the Central Bank, and will advise the market as soon as the rating impact of Abrar’s closure on the affected issues becomes clear.