Following the announcement by CNLT (Far East) Berhad’s (CNLT) Board of Directors to Bursa Malaysia dated 11 June 2007 that CNLT is an affected listed issuer under the Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities") and Practice Note 17/2005 ("Amended PN17") and after considering the obligations the company is required to fulfil to avoid a trading suspension of all its listed securities and a possible delisting, MARC’s earlier concerns about CNLT’s ability to implement its turnaround plans quickly enough to stem further erosion of its competitive position and its credit profile have heightened. The company will be challenged to meet its financial covenants under the CP/MTN programmes. Nevertheless, noteholders’ interests remain covered via the irrevocable and unconditional Bank Guarantee securing the facility.

CNLT’s RM60.0 million bank guaranteed Commercial Papers/Medium Term Notes Issuance Programme (CP/MTN) ratings remain at MARC-1(bg)/A(bg).