PETALING JAYA: Alliance Bank Malaysia Bhd says the super senior tranches of Idaman Capital Bhd has adequate provision despite RAM Rating Services Bhd's downgrading of the company's senior, mezzanine and subordinated bonds.
Alliance Bank said in a statement yesterday that the downgrade by the rating agency was due to the weaker credit profile of one of the obligors that accounted for RM40mil of the total loans portfolio value of RM800mil.
“The rating of the super senior tranches, which account for 60% of the total portfolio value, have been reaffirmed by RAM and we have adequate provision based on the latest revised rating by RAM,” the bank said.
In a statement yesterday, RAM Rating Services said it was downgrading Idaman Capital's senior fixed-rate bonds with an issue size of RM220mil from AAA to A3, mezzanine fixed-rate bonds with an issue size of RM20mil from AA2 to BBB2, and subordinated bonds with an issue size of RM80mil from B3 to C3.
The statement added that one of the obligors' credit estimates had been downgraded to D following a cross-default on its other debt obligations and on concerns about the obligor's liquidity profile and the accuracy of its financial statements.