MARC has issued this rating update in connection with Ingress Sukuk Berhad’s (ISB) RM160 million Sukuk Al Ijarah pursuant to a confirmation received from its facility agent that approval has been obtained from the sukukholders for a further six-month extension of the redemption date of the first tranche of the sukuk programme to July 9, 2010 from January 9, 2010. The redemption dates for the second and final tranches of the sukuk remain unchanged at July 9, 2010 and July 8, 2011, respectively. MARC’s rating of DIS on the sukuk remains unchanged and continues to reflect an uncured payment default on its first tranche of the sukuk programme based on its July 9, 2009 original scheduled maturity. The rating will remain at DIS until the default is cured or the rating is withdrawn upon the completion of parent, Ingress Corporation Berhad’s (Ingress), restructuring process.  

The Ingress Group is principally involved in automotive component manufacturing, with modest exposure to the power engineering, railway electrification and oil and gas sectors.

Since MARC’s last rating action on July 13, 2009, the group is still maintaining discussions with sukukholders to restructure the outstanding sukuk. The restructuring proposal is pending acceptance by the sukukholders and the group expects to complete the restructuring process by end-March 2010. 

Contacts:
Lee Mei Lin, 03-2090 2259/ meilin@marc.com.my;
Sabesh Parameswaran, 03-2090 2260/ sabesh@marc.com.my