MARC has downgraded its rating on Mithril Berhad’s (Mithril) RM70 million Redeemable Convertible Secured Loan Stock (RCSLS) to D from B following Mithril’s failure to make a RM1.25 million coupon payment on the RCSLS which fell due on April 5, 2011. This affects the outstanding RCSLS with nominal value of RM41.8 million. MARC had earlier maintained Mithril’s rating on negative outlook since May 2007 to highlight Mithril’s persistently weak liquidity position as well as lack of progress in turning around its business.

Mithril had announced to Bursa Malaysia its default on its coupon payment obligations on April 5, 2011. The company is seeking to dispose the MAA Kota Kinabalu (MAAKK) building which had been pledged as security for the RCSLS.

Following the downgrade to D, MARC will no longer undertake any rating surveillance on the RCSLS.

Contacts:
Janey Chock, +603-2082 2264/ janey@marc.com.my;
Rajan Paramesran, +603-2082 2233/ rajan@marc.com.my.