MARC does not expect the acquisition by WCT Engineering Berhad (WCT) of the 35.17% stake in WCT Land Berhad (WCTL) which it does not own to have a meaningful effect on the corporate debt ratings of WCT and WCTL. WCT and WCTL have ratings of A+ID/MARC-1ID and A+(cg) respectively.

On November 30, WCT announced that it had made a voluntary take over offer to acquire all the remaining shares in WCTL. It had also offered to acquire all outstanding 5 year 3% Convertible Redeemable Debt Securities (CRDS). The share swap nature of the offer will preserve WCT’s capital position. MARC believes that potential operational efficiency and cost saving gains from the privatization will not have a material effect on WCT’s near-term credit protection metrics.

MARC will continue to monitor WCT’s progress on streamlining financial resources as well as  rationalizing its work force and resources.