MARC has lowered the short- and long-term ratings on Evermaster Group Berhad’s (EGB) RM50 million Al-Bai Bithaman Ajil Islamic Debt Securities (BaIDS) and RM40 million Murabahah Multi-Option Notes Issuance Facility (MONIF) to DID from MARC-4ID and BB-ID respectively. The downgrades are based on EGB’s failure to meet the scheduled BaIDS redemption of RM15 million on December 30, 2008, as confirmed by the Facility and Security Agent, on December 31, 2008.

The sole BaIDS holder, Prokhas Sdn Bhd, a wholly-owned subsidiary of Ministry of Finance Inc., had earlier given an indulgence to EGB to defer its scheduled sinking fund payments and to submit its proposal to restructure the BaIDS. EGB was unable to complete the restructuring ahead of December 30, 2008, causing the rating on the BaIDS to fall to a default status. Consequently, MARC has also downgraded its rating on EGB’s MONIF to DID to reflect a cross-default under the notes.

Contacts:
Hafizan Haron 03-2090 2238/ hafizan@marc.com.my;
Nadia Edmaz Abdul Hadi, 03-2090 2262/ nadia@marc.com.my.