Thursday, May 29, 2008
MARC said today that there is no downward pressure on the AAAIS rating assigned to Musyarakah One Capital Berhad’s (“Musyarakah One”) Sukuk Musyarakah Series 2005-A pursuant to TIME Engineering Bhd (TIME) becoming an affected listed issuer as a result of the revised Practice Note No.17/2005 (PN17). TIME owns 100% of TIME Systems Integrators (TSI), the Originator under the up to RM2,500 million Asset-Backed Sukuk Musyarakah Programme (the Programme). The credit strength of the Government of Malaysia, the obligor for the underlying receivables, continues to be the key rating factor for the Sukuk.
MARC is of the view that limited reliance can be placed on TIME’s capacity to fulfil its undertaking under the Programme in light of its PN17 affected listed issuer status and the modified opinion expressed by its auditors in its audited accounts for the financial year ended December 31, 2007. Nonetheless, at this juncture, TSI remains a wholly-owned subsidiary of TIME and has continued to be in compliance with all the terms and conditions under the Programme.
Under the terms of the Programme, TIME has provided an undertaking to maintain its shareholding in
TSI and ensure the latter maintains a minimum Net Tangible Assets (NTA) of RM6.5 million throughout the availability period of the Programme and a period of six months and one day thereafter. Failure to meet the aforementioned conditions will result in a termination event under the Programme, pursuant to which Musyarakah One shall cease to purchase any further receivables from TSI and accordingly, cease to issue any additional sukuk musyarakah.
29th May 2008
MARC is of the view that limited reliance can be placed on TIME’s capacity to fulfil its undertaking under the Programme in light of its PN17 affected listed issuer status and the modified opinion expressed by its auditors in its audited accounts for the financial year ended December 31, 2007. Nonetheless, at this juncture, TSI remains a wholly-owned subsidiary of TIME and has continued to be in compliance with all the terms and conditions under the Programme.
Under the terms of the Programme, TIME has provided an undertaking to maintain its shareholding in
TSI and ensure the latter maintains a minimum Net Tangible Assets (NTA) of RM6.5 million throughout the availability period of the Programme and a period of six months and one day thereafter. Failure to meet the aforementioned conditions will result in a termination event under the Programme, pursuant to which Musyarakah One shall cease to purchase any further receivables from TSI and accordingly, cease to issue any additional sukuk musyarakah.
29th May 2008