MARC has downgraded its rating on Oilcorp Berhad’s (Oilcorp) RM70 million Murabahah Underwritten Notes Issuance Facility/Islamic Medium Term Notes Facility (MUNIF/IMTN) to DID from MARC-4ID/CID. Concurrently, MARC has resolved the MARCWatch Negative status of the ratings. The rating action reflects Oilcorp’s failure to meet its RM20 million principal repayment due on its original scheduled redemption of October 7, 2009.

Oilcorp has deposited RM10 million of the RM20 million due into the facility’s sinking fund account, and obtained from its sole bondholder a three-month extension until January 7, 2010 to deposit the remaining balance. However, MARC regards Oilcorp’s failure to meet the principal repayment based on its original scheduled redemption as a default. MARC will maintain the ratings at DID as long as the missed payment continues to be outstanding and until such time as Oilcorp’s debt restructuring is completed.

Contacts:
Anandakumar Jegarasasingam, 03-2090 2250/ kumar@marc.com.my;
Eric Chua, 03-2090 2245/ cheekiong@marc.com.my