Following our announcement dated 29 December 2006, we have placed the ratings of EPMB’s RM150 million Murabahah Notes Issuance Facility (MUNIF) and RM120 million MUNIF, both rated at MARC-2ID, on MARCWatch with developing outlook. This is pursuant to Abrar Discount Berhad (Abrar)’s announcement on Bank Negara Malaysia (BNM)’s instruction to Abrar to cease operations.

MARC was made to understand that approximately RM32 million of EPMB’s RM150 million MUNIF are currently underwritten by Abrar. Chief to MARC’s main concern is that the roll-over of the EPMB’s RM150 million MUNIF at its respective maturities may be affected by the closure of Abrar, giving rise to refinancing risk issues.

MARC acknowledges that EPMB’s RM120 MUNIF/Islamic Medium Notes (IMTN) Programme issued in 2006 is not underwritten whilst its earlier RM150 million MUNIF/IMTN Programme issued in 2004 was initially fully underwritten by Amanah Short Deposits Berhad.

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.