MARC has lifted its MARCWatch Developing placement on the ratings of PRI and affirmed the long and short term debt ratings of PRI’s RM40.0 million Islamic Commercial Papers/Medium Term Notes Issuance Programme at AID (A Flat, Islamic Debt) and MARC-2ID respectively with a Stable Outlook.
MARC had placed the ratings of PRI on MARCWatch Developing on 15 January 2007 in connection with a RM46 million Murabahah Multi Option Notes issuance facility issued by its subsidiary, The Royal Mint of Malaysia Sdn Bhd (RMM), that was lead arranged and underwritten by Abrar Discounts Berhad. Abrar had on 29 December 2006 made tender abortion announcements over BNM’s Fully Automated System for Tendering (FAST) in relation to selected commercial papers.
In the course of MARC’s discussions with the management of PRI, MARC was informed that the company has taken steps to refinance the RMM facility. In the interim period, MARC understands that the Islamic commercial papers are currently being rolled over, mitigating MARC’s earlier concerns. Additionally, PRI also advised that press reports alleging that it was being investigated by the Central Bank for a shortfall of coins in circulation, were baseless.