MARC has lifted its MARCWatch Developing placement on Malaysian AE Models Holdings Berhad’s (MAE) RM200.0 million Islamic Commercial Paper/Islamic Medium-Term Notes (ICP/IMTN) Programme and reaffirmed its MARC-2 ID/A ID ratings. The ratings carry a stable outlook.

The ratings were put on MARCWatch Developing on the 28 February 2007 following the withdrawal of Abrar Discounts Berhad (Abrar) as an underwriter for RM25.0 million of the ICPs, thus reducing the total ICPs underwritten amount from RM175.0 million to RM150.0 million. The outstanding amount of the facility currently stands at RM120 million, which leads MARC to believe that any impact from the withdrawal of Abrar would be limited. Based on MARC’s review of its financials for the 9-month period ended February 2007, MAE has secured sufficient borrowings to fund its expanding order book. Notwithstanding, MAE’s negative cash flow from operations remain a concern.

The MAE group of companies are involved in providing consulting services, designing, manufacturing, installation and maintenance of automated materials handling and factory automation systems.