RAM places Aldwich bonds on negative outlook

  • Business
  • Wednesday, 09 Sep 2009

PETALING JAYA: RAM Rating Services Bhd has placed Aldwich Bhd’s Class A and Class B senior bonds, as well as the C1 rating of its Class C junior notes, on Rating Watch with a negative outlook.

The rating agency said yesterday in a statement that the Rating Watch was imposed due to the delay in getting information from Aldwich’s management, despite repeated requests since early July.

“This has affected our ongoing surveillance on the ratings of the company’s senior bonds and junior notes (collectively, the bonds). Severe rating actions may be taken on Aldwich’s ratings if the requested information is still not forthcoming,” it said.

Aldwich, a wholly owned subsidiary of Aldwich Enviro-Management Sdn Bhd, was incorporated to acquire the catalyst-recovery, waste-oil-recovery (WOR) and tank-cleaning businesses of its parent and the bonds had been issued to fund the purchase of these businesses, the rating agency said.

“Based on the periodic monitoring reports submitted by Aldwich, we note that the company’s WOR and catalyst-recovery operations have not shown signs of deterioration; monthly waste oil supplies have remained stable.

“Nonetheless, as highlighted in our last rating update on March 18, it remains critical that the improvement in Aldwich’s business performance translates into healthier financials and cash flows to support its debt amortisation profile,” it said.

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