MARC has downgraded its long- and short-term ratings on Nam Fatt Corporation Berhad’s (Nam Fatt) RM250 million Islamic Commercial Papers/Islamic Medium Term Notes Programme (ICP/IMTN) as follows:

• Long-term debt rating to DID from CID
• Short-term debt rating to DID from MARC-4ID

MARC has also removed Nam Fatt’s ratings from MARCWatch Negative where they were placed on December 30, 2009.

Today’s rating action follows Nam Fatt’s failure to repay its RM80 million ICPs which matured on April 6, 2010 after being unable to roll over the ICPs, as confirmed by the facility agent, Hwang-DBS Investment Bank Berhad. Nam Fatt has outstanding ICPs of RM130 million. Since MARC’s last rating action on March 16, 2010, Nam Fatt has applied for an ad interim order to restrain its existing creditors from taking further legal action to recover amounts owed by the group.

Following the downgrade, MARC will no longer conduct any rating surveillance on Nam Fatt’s ratings.

Contacts:
Rajan Paramesran 03-2090 2233 / rajan@marc.com.my;
Jason Kok 03-2090 2258 / jason@marc.com.my