MARC has downgraded its rating on Malaysian Merchant Marine Bhd’s (MMM) RM120 million Al Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) to DID from CID. Concurrently, MARC has removed MMM’s rating from MARCWatch Negative, where it was placed on March 17, 2010 to reflect heightened concerns of imminent default. 

The rating action follows MMM's failure to meet an accelerated repayment of the BaIDS which became immediately due and payable subsequent to the declaration of an event of default and notice of the same by the trustee and security trustee on March 29, 2010. MMM announced its default in payment on March 30, 2010. In the same announcement to Bursa Malaysia Securities Berhad, the company also disclosed that it had become insolvent and would not be able to pay any portion of the BaIDS.

Following the downgrade to DID, MARC will no longer undertake any rating surveillance on the BaIDS.

Contacts:
Francis Xaviour Joe, 03-2090 2279 / fxjoe@marc.com.my;
Ryan Lee Ju Vern, 03-2090 2230 / juvern@marc.com.my