MARC today has downgraded its Islamic debt ratings on Kinsteel Berhad’s (Kinsteel) RM100 million Murabahah Commercial Papers/Medium Term Notes (CP/MTN) Programme to DID from MARC-4ID/CID. Concurrently, the agency has withdrawn its ratings on the CP/MTN at the request of the issuer, with the consent of the sole outstanding Murabahah CP holder. Kinsteel’s CID rating on RM100 million Murabahah Medium Term Notes (MMTN) Programme remains on MARCWatch Negative.

The downgrade to default follows Kinsteel’s failure to redeem its outstanding RM40 million Murabahah CP on September 5, 2013 (within the first extension period for payment) notwithstanding the further payment extension obtained from the noteholder until October 5, 2013, and consent for the rating removal. The CID rating on Kinsteel’s RM100 million MMTNs denotes a substantial risk of default.

Contacts:
Taufiq Kamal, +603-2082 2251/ taufiq@marc.com.my;
Ngiam Tee Wei, +603-2082 2268/ teewei@marc.com.my;
Rajan Paramesran, +603-2082 2233/ rajan@marc.com.my