MARC has downgraded Englotechs Holding Berhad’s (Englotechs) RM50.0 million Murabahah Medium-Term Note Programme (MMTN) rating to DID from BBID.

The rating action is based on the cotton glove manufacturer’s failure to meet its profit payment of RM1.7 million due on March 26, 2009 as confirmed by OSK Trustees Berhad. In connection with the missed profit payments, Englotechs is seeking an extension of time to meet its profit payment until April 30, 2009. Irrespective of whether the extension is obtained, MARC considers a default to have occurred where the failure to make the scheduled payment is due to the issuer being under financial stress.

Contacts:
Jason Kok, 03-2090 2258 / jason@marc.com.my;
Francis Xaviour Joe, 03-2090 2279/ fxjoe@marc.com.my