Friday, October 14, 2011

RAM Ratings monitoring CBI probe of Maxis Comm

KUALA LUMPUR: RAM Rating Services Bhd is monitoring the developments arising from India's Central Bureau of Investigations (CBI) probe into Maxis Communications Bhd's (MCB) purchase of Aircel Ltd.

RAM Ratings said on Friday, Oct 14 that a formal investigation had commenced after the CBI registered a First Information Report on MCB's purchase of Aircel.

The ratings agency also noted MCB had issued a press release denying any wrongdoing on its part, while a separate announcement by Maxis Bhd to Bursa Malaysia stated that the FIR is not expected to have any impact on the company.

RAM Ratings said Binariang GSM Sdn Bhd (BGSM) was the parent of MCB. It also said the group's credit profile was anchored by the profitability and cashflow-generating capabilities of its key operating entities, Maxis Berhad and Aircel.

BGSM's Senior Sukuk and Junior Sukuk (collectively referred to as 'the Islamic securities') currently carry respective AA3/Stable/P1 and A2/Stable/- ratings from RAM Ratings.


RAM Ratings is undertaking the annual rating review on BGSM's Islamic securities, which is expected to be concluded within the next two months.

'We will be monitoring developments on the CBI probe; any material development that could affect the operational or financial profiles of the group will be taken into account in our rating review,' it said.


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