MARC has placed its A- / MARC-2 ratings on Equine Capital Berhad’s (“ECB”) Commercial Papers / Medium Term Notes Programme on MARCWatch Developing. The MARCWatch placement follows a recent confirmation from the issue’s trustee that a breach in the Debt Service Coverage Ratio (“DSCR”) had occurred as at March 31, 2006. This confirmation from the trustee comes a year after the occurrence of the violation, and effectively negates a statement on financial covenant compliance provided to MARC in July 2006.

Currently, MARC has been informed that the issuer and the trustee are seeking bondholders’ instruction on the aforesaid covenant violation and that a bondholders’ meeting would be convened for this purpose although the remedy period has already lapsed.

MARC will closely monitor the developments and will assess their impact on the current rating. Any rating implications arising therefrom will be advised in due course.