MARC has downgraded the long and short term ratings of PRI’s RM40.0 million ICP/IMTN to D ID (D, Islamic Debt) and withdrawn its ratings upon receipt of confirmation from Bank Muamalat Malaysia Berhad (BMMB), that an “Event of Default” has been declared in relation to the ICP/IMTNs.
PRI had failed to replenish an amount of RM191,945 into the Finance Service Reserve Account (FSRA) of its RM40 million ICP/IMTN on 28 May 2007. PRI’s inability to cure such default under the Trust Deed dated 30 June 2004, within the remedy period, has resulted in the entire RM40 million ICP/IMTN becoming due and payable.

MARC had earlier downgraded the ratings of PRI to C ID /MARC-4 ID on 23 May 2007 following concerns as to the company’s ability to fund near-term commitments arising from the termination of a contract to supply raw materials by Bank Negara Malaysia (“BNM”).