MARC maintains its AAAID and AAID ratings on ABS Plantation Assets Berhad’s (ABS Plantation) RM50 million Class A and RM45 million Class B Senior Notes Bai-Bithaman Ajil Islamic Debt Securities (BaIDs) respectively on MARCWatch Developing, where they have been placed since August 28, 2009. This MARCWatch extension, the second, since November 12, 2009, considers the delayed redemption of the BaIDS, which is currently pending the discharge of ABS Plantation’s securitised plantation assets in favour of the local financial institution that is providing the term financing facility for the redemption. The terms of the financing facility require the discharge to be completed by February 26, 2010, failing which the cash proceeds of RM78.5 million already credited in ABS Plantation’s designated account will have to be refunded to the financial institution.

As of January 31, 2010, the balances in the designated accounts, including the financing facility, stood at RM 84.5 million. This amount would be sufficient for ABS Plantation to proceed with the redemption of the outstanding Class A and Class B notes on the next coupon payment date which falls on March 8, 2010 amounting to RM84.2 million should the discharge be completed.

MARC expects to resolve the MARCWatch by end-February 2010 on the assumption that the discharge of the collateral will occur within the stipulated time frame.

Contacts:
Abbul Abbas Arrabe Mohamad, 03-2090 2256/ abbulabbas@marc.com.my;
Nadia Edmaz Abdul Hadi, 03-2090 2262/ nadia@marc.com.my;
Sandeep Bhattacharya, 03-2090 2247/ sandeep@marc.com.my