(PPHB). For MSG, the long and short-term ratings assigned to its RM150mil commercial papers/medium-term notes issuance programme (2002/2007) (CP/MTN) were reaffirmed at A3 (bg) and P1 (bg) respectively.
As for PPHB, the respective long and short-term term ratings of its RM50mil bank-guaranteed commercial papers/medium-term notes programme (2001/2008) were reaffirmed at AAA (bg) and P1 (bg).
RAM said the ratings on MSG reflected the unconditional and irrevocable guarantee extended by a consortium of financial institutions, based on the weakest link approach.
The backing of the guarantee enhances the credit risk profile of the CP/MTN beyond MSG's inherent or standalone credit risk.
The MSG group manufactures and markets a wide variety of glass products.
On PPHB, RAM said the ratings reflected the strength of the guarantor bank, Malayan Banking Bhd.
RAM said the backing of the guarantee enhanced the credit profile of the debt facility beyond PPHB's inherent or standalone credit risk.
PPHB is primarily involved in the manufacture of corrugated cartons and offset display boxes as well as supply chain management. – Bernama
RAM has also reaffirmed the bonds' AA3 rating following the successful commissioning of the plant on June 20 this year.
RAM said the Rating Watch with a negative outlook was placed on the bonds in April premised on the delays vis-a-vis the commercial operations date (COD) of the company's power plant.
“We understand that the problems encountered during commissioning have been rectified.
“The problems are not expected to affect the plant's performance in the future,” RAM said in a statement.
To date, the provisions of its engineering, procurement and construction contract had moderated Prai Power's financial loss arising from the delayed COD, it said.
The possibility of a rating upgrade in the future, if any, will be largely dependent on Prai Power establishing a reasonable operational track record that is acceptable to RAM. – Bernama
PPSB, a property developer, plans to undertake a mixed development project known as Bandar Pinggiran Cyber on two parcels of land totalling 320ha in Dengkil, Sepang.
MARC said in a statement the rating reflected the competitive position of the proposed development in terms of location, infrastructure accessibility and pricing.
Despite the potentially high take-up for this proposed development, credit and liquidity risks were not mitigated as the Munif was not supported by secured sales.
“As the development will take about seven to eight years to complete, PPSB is also exposed to potential adverse developments in the property market,” it said.
The proposed comprehensive and integrated township comprises single and double-storey link houses, bungalows, apartments and shophouses.
The project has a gross development value RM1.57bil.
MARC said PPSB had projected a pre-tax profit of RM243.23mil by the end of the project.
Talam Corp Bhd, through its subsidiary Talam Builders Sdn Bhd, is the turnkey contractor for this project.
Its involvement from the start mitigates construction risk.
MARC said an option agreement was also available under the issue structure, where bondholders could exercise a put option on Talam in the event that PPSB defaults. – Bernama
For MSG, the long and short-term ratings assigned to its RM150mil commercial papers/medium-term notes issuance programme (2002/2007) (CP/MTN) were reaffirmed at A3 (bg) and P1 (bg) respectively.
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