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Saturday, April 30, 2011

Dawama's junior sukuk downgraded - Business Times

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has downgraded Dawama Sdn Bhd's RM20 million junior sukuk rating to "D" from "CIS" while maintaining RM120 senior sukuk rating at "CIS".

Both the sukuks were Dawama's RM140 million Sukuk Musyarakah Medium Term Notes Programme.

Dawama holds a concession to print school textbooks on behalf of a statutory entity, Dewan Bahasa dan Pustaka.

In a statement yesterday, MARC said the downgrading of the junior sukuk reflected missed profit payment on April 27 2011 following notification from the sukuk trustee that it has been instructed not to release any profit payment on the junior sukuk.
MARC ceased rating surveillance on the defaulted junior sukuk effective yesterday.

Meanwhile, rating on the senior sukuk remained unchanged following confirmation from the trustee that senior sukuk holders have consented to defer scheduled principal repayment on April 27 until September 27.

"Nonetheless, Dawama met its April 2011 profit payment on the senior sukuk. We understand that senior sukuk holders will be duly compensated for the overdue principal repayment," it said.

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