Friday, April 29, 2011

MARC downgrades Dawama's RM20m debt notes to D

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has downgraded the RM20 million debt notes of Dawama Sdn Bhd ' which has a concession to print school textbooks on behalf of Dewan Bahasa dan Pustaka.

The ratings agency said on Friday, April 29 it had lowered its rating on the Musyarakah Medium Term Notes 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 said it would cease rating surveillance on the defaulted Junior Sukuk from Friday

As for the RM120 million senior debt notes, its rating 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 until Sept, 2011.

MARC said Dawama met its April 2011 profit payment on the Senior Sukuk.

'MARC understands that Senior Sukuk holders will be duly compensated for the overdue principal repayment,' it said.

The rating agency said it would 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 Sept 27, 2011.

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