MALAYSIAN Rating Corp Bhd (MARC) affirmed the rating of Puncak Niaga Holdings Bhd's (PNHB) RM546.875mil redeemable unconvertible junior notes (RUN) with RM109.375mil detachable warrant, with a negative outlook.
In a statement, MARC said that RUN was rated the same as Puncak Niaga (M) Sdn Bhd's (PNSB) junior notes A (A notes).
The affirmation reflects a perfected security interest in the A notes and the escrow account to which matching debt service payments under the A notes will flow, it said.
The 3-notch differential between the senior debt and junior debt ratings currently assigned to PNSB in turn, reflects MARC's criteria for notching down junior debt, and the relatively high proportion of senior and secured debt that ranks ahead of the notes in liquidation.
The rating however, has been placed on negative outlook due to the rising trade receivables due from Perbadanan Urus Air Selangor Bhd (Puas).
The maintenance of the present rating is subject to the outcome of the negotiations for the water distribution privatisation and resolution of the burgeoning collection problem.
Being a holding company, PNHBs revenue is dependent upon dividend receipts, management fees or asset sales, MARC said.
Nevertheless, based on the terms stipulated in the A notes, advances from PNSB are allowed for PNHB to undertake water-related projects, it said. Bernama
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