MARC has received confirmation from Prokhas Sdn Bhd, the sole holder of Evermaster Group Berhad’s (EGB) RM50 million Al-Bai Bithaman Ajil Islamic Debt Securities (BaIDS), of EGB’s proposed rescheduling of the BaIDS. The BaIDS and the RM40 million Murabahah Multi-Option Notes Issuance Facility’s (MONIF) long- and short-term ratings of BBB-ID and MARC-3ID remain on MARCWatch Negative, pending details of the final restructuring proposed and conclusion of our annual review on EGB.

The financial condition of EGB, which is mainly involved in the manufacturing and trading of plywood and moulded timber products, remains weak. For the first three months for the fiscal period ending June 2009 (1Q2009), EGB reported a revenue of RM16.4 million and a pre-tax profit of RM323,000. This compares with a revenue of RM15.0 million and a pre-tax loss of RM338,000 in the preceding quarter ended March 31, 2008. Based on total borrowings of RM100.2 million, EGB’s debt-to-equity level stood at 1.13 times in the same period while financial flexibility continues to be tight as reflected by its small and declining cash balances.
MARC will continue to monitor EGB’s progress and will issue rating updates as more information on the proposed restructuring becomes available.

Contacts:
Hafizan Haron 03-2090 2238/ hafizan@marc.com.my;
Amy Teoh, 03-2090 2259/ amy@marc.com.my.