Thursday, Feb 07, 2008
MARC has revised its rating outlook on DRB-HICOM Berhad’s (DRB-HICOM) Islamic Debt Securities to positive from developing in connection with DRB-HICOM’s proposed divestment of its 20.2% stake in EON Capital (EONCap) to Primus Pacific Partners Ltd (Primus). This rating action affects the following rated facilities:-
- RM200.0 million Underwritten Murabahah CP/MTN rated A+ID / MARC-1ID;
- RM120.0 million Murabahah CP/MTN facilities rated A+ID / MARC-1ID and;
- RM680.0 million Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) rated A+ID.
Part of the proceeds from the sale of EONCap shares will be deposited into a designated account for the purpose of redeeming its RM680.0 million Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) as required under the terms of the issuance. The balance of the sale proceeds is expected to be used to fund DRB-HICOM’s future acquisitions and as working capital. The Group estimates that its gearing would fall below 0.50 times upon completion of the disposal, which is expected by the first quarter of 2008. MARC will continue to monitor developments and their impact on assigned ratings.
- RM200.0 million Underwritten Murabahah CP/MTN rated A+ID / MARC-1ID;
- RM120.0 million Murabahah CP/MTN facilities rated A+ID / MARC-1ID and;
- RM680.0 million Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) rated A+ID.
Part of the proceeds from the sale of EONCap shares will be deposited into a designated account for the purpose of redeeming its RM680.0 million Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) as required under the terms of the issuance. The balance of the sale proceeds is expected to be used to fund DRB-HICOM’s future acquisitions and as working capital. The Group estimates that its gearing would fall below 0.50 times upon completion of the disposal, which is expected by the first quarter of 2008. MARC will continue to monitor developments and their impact on assigned ratings.