MARC has taken the following actions on the Dawama Sdn Bhd's (Dawama) RM140.0 million Sukuk Musyarakah Medium Term Notes Programme comprising RM120.0 million Senior Sukuk and RM20.0 million Junior Sukuk:

MARC has lowered its rating on the Junior Sukuk to 'D' from 'CIS' to reflect missed profit payment on April 27, 2011 following notification from the Sukuk trustee that it has been instructed not to release any profit payment on the Junior Sukuk. MARC will cease rating surveillance on the defaulted Junior Sukuk from today.

MARC's rating on the Senior Sukuk, meanwhile, remains unchanged at 'CIS' following confirmation from the trustee that Senior Sukukholders have consented to defer scheduled principal repayment of RM20.0 million on April 27, 2011 until September 27, 2011. Nonetheless, Dawama met its April 2011 profit payment on the Senior Sukuk. MARC understands that Senior Sukukholders will be duly compensated for the overdue principal repayment. MARC will continue to review management's ability to manage its cash flows through the next payment date. The rating will be lowered to 'D' in the event no payment is made on September 27, 2011.

Dawama holds a concession to print school textbooks on behalf of statutory entity, Dewan Bahasa dan Pustaka.

Contacts:
Darrell Lim, +603-2082 2261/ darrell@marc.com.my;
Rajan Paramesran, +603-2082 2233/ rajan@marc.com.my