Friday, December 30, 2011

MNRB up in line with firm market, ignores downgrade

KUALA LUMPUR (Dec 30): Shares of MNRB HOLDINGS BHD [] rose slightly in thin trade on Friday, in line with the firmer market sentiment, as investors ignored the downgrade by Malaysian Rating Corp Bhd (MARC).

At 3.23pm, MNRB was up three sen to RM2.53. There were 81,500 shares done at prices ranging from RM2.47 to RM2.53.

The FBM KLCI was up 7.69 points to 1,514.38. Turnover 809.11 million shares valued at RM691.29 million. There were 383 gainers, 316 losers and 318 stocks unchanged.

MARC had on Friday lowered its rating on MNRB's RM200 million Islamic medium term notes (IMTNs) to A+IS from AA-IS after the reinsurer suffered two consecutive years of losses and thin cash flow coverage measures.

It said while the outlook for the debt notes was stable, the downgrading reflected weakened holding company level financial metrics after losses for FY ended March 31, 2010 (FY2010) and FY2011.

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