Following verbal confirmation from note holders that Stenta Films (Malaysia) Sdn Bhd (Stenta) has failed to redeem and cancel RM7.0 million of MUNIF notes due on September 19, 2007, MARC has lowered the rating on Stenta’s RM90.0 million Murabahah Notes Issuance Facility (MUNIF) from ‘MARC-4ID’ to ‘DID’ . MARC has had to rely on verbal confirmation, as the trustee for the issue has declined MARC’s request to provide written confirmation. MARC understands from Stenta that the company has submitted a debt restructuring proposal to note holders.

Stenta is a Biaxially Oriented Polypropylene film manufacturer with operations in Malaysia and Indonesia. The company which is a 70% owned subsidiary of P.T. Argha Karya Prima Industry of Indonesia commands approximately 50% of the domestic market and has a manufacturing plant located in Bangi, Selangor.

Further to the rating downgrade, MARC has withdrawn its rating and no longer has any rating obligation on the MUNIF issue.