MARC has downgraded Intelbest Corporation Sdn Bhd’s (ICSB) RM110.0 million Bai Bithaman Ajil Bonds (BaIDS) and RM50.0 million Murabahah Notes Issuance Facility (MUNIF) (collectively known as Islamic Debt Facilities) ratings to D from B+ID/MARC-4ID as a result of a missed profit payment for the BaIDS on February 28, 2008. ICSB is principally an investment holding company and property developer with subsidiaries involved in property development in the Klang Valley.

MARC had earlier placed ICSB’s Islamic Debt Facilities’ ratings on MARCWatch Negative on January 3, 2008, following further deterioration in ICSB’s operating and financial trends since MARC’s previous rating action in July 2007, as well as its unresolved debt covenant breaches, and failure to furnish audited accounts for the last two financial years to MARC.

ICSB has requested for a deferment of the profit payment to April 28, 2008 which is pending approval from the BaIDSholders. Following the rating downgrade to D, MARC no longer has a surveillance obligation in respect of the bonds.