MARC announced today that Petroliam Nasional Berhad’s (Petronas) suspension of Vastalux Sdn Bhd’s (Vastalux) license is not expected to have a material impact on it’s rating of A+IS/Stable on Vastalux Capital Sdn Bhd’s (VCSB) RM100 million Sukuk Musyarakah. The rating had been downgraded to A+IS from AA-IS on January 15, 2010. The suspension of the license should not affect the recoverability of outstanding receivables and progress billings to be raised on completed works on which VCSB is relying to fund its remaining sinking fund account (SFA) payment obligation of RM6.8 million. MARC says that the current rating has anticipated that Vastalux is able to realize a major portion of the RM49.5 million completed works. In the event that Vastalux experiences problems in achieving sufficient collections, the current rating may be at risk.

MARC will continue to monitor developments concerning Vastalux’s progress in collecting receivables securing the sukuk and mitigating actions, if any, taken by Vastalux, VCSB or relevant parties, including majority shareholders, to counter the increased event risk.

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