Adequate provisioning for bonds

  • Business
  • Wednesday, 06 Feb 2008

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. 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

Ringgit opens marginally as Covid cases surge
Foreign funds' net selling slows
Bitcoin surges toward US$40,000 level
Cautious start for Bursa after record high Covid cases
BAT sales growth likely to continue in 2H
Quick take: Fibon jumps 34% in active trade
Quick take: BAT shares rise on in-line earnings
Kenanga slashes TIV target for auto sector
Trading ideas: Hextar, Pertama Digital, Seni Jaya, Hong Seng, BAT
Top read business stories from July 19 to 24

Stories You'll Enjoy