MARC has extended the MARCWatch Negative placement on the following ratings of Intelbest Corporation Sdn Bhd (“Intelbest”) which had been placed on MARCWatch Negative since 23 January 2007:

RM20.0 million Series 1 BaIDS  BBB+ID
RM35.0 million Series 2 BaIDS  BBBID
RM55.0 million Series 3 BaIDS  BBBID
RM50.0 million MUNIF  MARC-3 ID

The ratings remain on MARCWatch Negative as a result of confirmation from the trustee that certain financial covenants had not been complied with. Remedial work following the landslide incident at Ukay Bistari which occurred mid last year remains on-going. The landslide incident has affected the project timelines of Intelbest’s Ukay Bistari development and consequently its progress billings, resulting in an adverse decline in group cashflows.

Currently, MARC is in the midst of completing its annual rating review and will resolve the MARCWatch. Any rating implications arising therefrom will be advised in due course.