MARC has lowered the rating on Ace Polymers (M) Sdn Bhd’s (“Ace”) RM70 million Al Bai Bithaman Ajil Islamic Debt Securities (“BaIDS”) from ‘BBB- ID’ to ‘D ID’. The rating of “D” reflects Ace’s failure to make scheduled payment on the RM10 million Primary BaIDS due on September 14, 2007. Ace was placed on MARCWatch Negative on August 15, 2007 following a shortfall in its Finance Service Reserve Account (FSRA) for its Primary and Secondary BaIDS redemption due on September 14, 2007.

The trustee has confirmed as of September 12, 2007, that the balance remaining in the Finance Service Reserve Account will be insufficient to meet the redemption of RM10 million Primary BaIDS scheduled on September 14, 2007. Subsequently, on September 13, 2007, the facility agent, KAF Investment Bank Bhd, announced that no payment will be made on the abovesaid Primary BaIDS.

Following the rating downgrade, MARC has withdrawn the rating and no longer has any rating obligation on the BaIDS issue.