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 DID from CID.

The rating action reflects Tracoma’s failure to redeem its first BaIDS series of RM50 million based on the original scheduled maturity on January 28, 2009, as confirmed by the BaIDS’ Trustee, Pacific Trustees Berhad. MARC considers the missed payment as an indication that the company is facing financial distress.

Tracoma has informed MARC that the BaIDSholders have approved the restructuring of the facility which includes inter-alia extending the tenure and repayment schedule of the BaIDS and that the debt restructuring is currently pending regulatory approval.

Contacts:

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

January 29, 2009