This rating update is issued following the partial redemption of Aegis One Berhad’s (Aegis One) AA rated RM900.0 million senior secured bonds (senior bonds) on 29 November 2007.  MARC received confirmation from the trustee that RM860.39 million of Aegis One’s senior bonds had been redeemed on 29 November 2007, following which approximately RM19.77 million senior bonds and RM100.0 million subordinated secured bonds (subordinated bonds) remain outstanding.

Aegis One’s liquidity reserve account balance of RM41.32 million at close of business on 29 November 2007 is sufficient for the full redemption of senior bonds, anticipated today, 30 November 2007. The subordinated bonds are due to mature seven days from the full redemption of the senior bonds.

To date, there have been no recoveries of defaulted loans. Nevertheless, the bondholders have agreed in the recent extraordinary general meeting for Aegis One to set aside a sum of RM800,000 to support future recovery efforts.
 
Aegis One is a bankruptcy remote special-purpose company incorporated in Malaysia, established for the primary purpose of undertaking this primary collateralised loan obligation (CLO) programme. Upon closing in November 2002, Affin Bank Bhd (Affin Bank) as the originator transferred its rights, title and interest in, to and under a pre-identified portfolio of corporate loans to Aegis One. The transaction is structured as a true sale of the corporate loans portfolio by the originator.

MARC will issue a further transaction update subsequent to the 7 December 2007 payment date of the subordinated bonds.