MARC is issuing an update on Tirai Impresif Sdn Bhd’s (TISB) AA- rating on RM100 million Medium Term Notes (MTN) programme in connection with a legal action filed by TISB’s ultimate holding company, VTI Vintage Bhd (VTI) against former Managing Director Ken Ong Thuan Ming. Bursa Malaysia listed VTI is mainly involved in manufacturing and trading of roof trusses and tiles.

MARC is of the view that the on-going legal suit has no rating implication on the MTN programme at wholly-owned subsidiary, TISB. TISB was established to issue the RM100 million MTN programme which has been structured to permit drawdown for receivables only upon completion of roofing projects invoiced to Syarikat Perumahan Negara Bhd (SPNB) by another subsidiary, Vintage Roofing and Construction Sdn Bhd (VRC). SPNB is a wholly-owned subsidiary of the Minister of Finance Incorporated (MOF) principally involved in provision of affordable housing in accordance with the National Housing Policy. SPNB had awarded a RM170 million contract for the supply and installation of roofing to VRC. The rating primarily reflects SPNB’s credit risk in respect of the receivables from which debt service obligations under the MTN are to be met. The transaction structure therefore insulates debtholders from the credit and management risks of the VTI Group.

At present, there are no amounts outstanding under the MTN programme and earlier drawdowns have been repaid.

Contacts:
Khairul Muzamel Perera 03-2090 2247/ kevinkhairul@marc.com.my;
Francis Xaviour Joe, 03-2090 2279/ fxjoe@marc.com.my