MARC has downgraded the rating of automotive parts supplier Tracoma Holdings Berhad’s (Tracoma) RM100 million Al Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) to CID from BID to reflect our expectation that no payment will be made on its first BaIDS series of RM50 million maturing on January 28, 2009. Concurrently, we have placed the lowered rating on MARCWatch Negative.

Since our last rating action in October 2008, BaIDSholders have approved certain changes to the original terms and conditions of the BaIDS which notably includes extension of the BaIDS tenure. The rating will be lowered to DID on its first original scheduled principal payment date of January 28, 2009 to reflect missed payment, consistent with MARC’s rating definition of default.

Contacts:

Hafizan Haron 03-2090 2238/ hafizan@marc.com.my
Nor Azlina Abdullah, 03-2090 2256/ norazlina@marc.com.my.

23 January 2009