MARC has removed its AAAIS ratings on Sacofa Sdn Bhd’s (Sacofa) and Sarawak Gateway Sdn Bhd’s RM160.0 million Sukuk Istisna’ and RM240.0 million Sukuk Ijarah (collectively referred to as the Sukuk) respectively from MARCWatch Developing where it has been placed since November 21, 2008 and affirmed both ratings with a developing outlook. The affirmation was premised on Sacofa’s compliance with its debt-to-equity (D/E) covenant of 4.0 times under the Sukuk Istisna’ programme following an equity injection of RM31.0 million from Sacofa’s principal shareholder, the State Financial Secretary of Sarawak, on February 18, 2009. On a pro-forma basis, the equity injection has resulted in Sacofa’s D/E reducing from 4.24 times as of December 31, 2008 to 3.25 times (as at February 18, 2009) as confirmed by Sacofa and verified by its external auditors, Ernst & Young.

MARC was informed that the Sukukholders had on 21 January 2009 consented to an early redemption of the outstanding RM400.0 million Sukuk which will be funded by the proposed issuance of RM400.0 million Islamic Medium Term Notes by a wholly-owned funding subsidiary. The developing outlook on the rating addresses the upcoming refinancing of the Sukuk. MARC will withdraw its AAAIS ratings on the Sukuk upon confirmation from the Trustee on the full repayment and cancellation of the facility.

Contacts:
Azlina Mohamed Noor Beg, 03-2090 2254/ azlina@marc.com.my;
Anthony Eng, 03-2090 2255/ anthony@marc.com.my