RAM said in a statement PPH Resorts is involved in the development of Pearl Island Country Resort, a mixed project comprising residential, commercial and leisure properties located on 82.8ha in Bayan Lepas, Penang.
It said the ratings had the strength of the irrevocable and unconditional guarantees provided by a consortium of three financial institutions: MALAYAN BANKING BHD, RHB Bank Bhd and Aseambankers Bhd. The backing of the guarantee, in effect, enhances the credit risk profile of the CP/MTN beyond PPH Resorts’ inherent credit risk. – Bernama
The short-term rating of Tranche 1 and 2 are reaffirmed at MARC1 and MARC2 respectively, the rating agency said.
The RM50mil Tranche 1 upgrade reflects the unconditional and irrevocable guarantee by Southern Bank Bhd.
The rating affirmation of RM50mil Tranche 2 is underpinned by the group’s sizeable land bank, favourable plantations maturity profile, strong profitability indicators and manageable debt leverage.
The rating, however, is moderated by lower key performance indicator when compared to other major plantation players, significant receivables due from holding company and vulnerability to cyclical developments in the palm oil industry. – Bernama
The negative outlook was placed in June 2004 pending the resolution of the group’s long outstanding trade receivables.
MARC said in a statement Bank Pembangunan & Infrastruktur Malaysia Bhd (BPIMB) had disbursed the first partial payment of the proposed RM1.335bil loan for the partial settlement of the outstanding receivables owed to PNSB. – Bernama
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