MARC’s A-/MARC-2 ratings on Equine Capital Berhad’s (ECB) Commercial Papers/Medium Term Notes Programme remain on MARCWatch Developing where they had been placed by MARC on April 18, 2007. The original MARCWatch placement was made following confirmation from the issue’s trustee that a breach in the Debt Service Coverage Ratio (“DSCR”) had occurred as at March 31, 2006. The confirmation from the trustee came a year after the occurrence of the violation, and effectively negating a statement on financial covenant compliance provided to MARC in July 2006.

To date, the bondholders have not declared an event of default with respect to the breach. The issuer has informed MARC that the audited accounts for FY2007 and the statement on the financial covenant which is to be confirmed by the auditors will be available before the end of this month. MARC will resolve the MARCWatch placement upon receipt of the auditor’s confirmation.