MARC has lifted the MARCWatch Negative and downgraded the long and short term ratings of Peremba Jaya Holdings Sdn Bhd’s (PJHSB) RM200 million Murabahah Underwritten Notes Issuance Facility (MUNIF)/ Murabahah Medium-Term Notes (MMTNs) to DID (D, Islamic Debt) following its failure to meet repayment obligations on its RM153 million Commercial Papers on 15 February 2007.

MARC had downgraded the ratings to CID/MARC-4ID   in January 2007 and had advised then that PJHSB was technically in default as a result of termination notices served on Arif Cerah Sdn Bhd (a subsidiary of PJHSB) by Putrajaya Holdings Sdn Bhd on Government Quarters Contracts.

MARC is aware that PJHSB is in discussions with note holders to reschedule the debt but no formal notification has been forthcoming. MARC is reviewing the effect of these developments on PECD Bhd (the holding company of PJHSB) and will advise any rating implications in a separate announcement.