RAM reaffirms AAA(fg) rating of guaranteed sukuk issued by MRCB’s subsidiary, Puncak Wangi
RAM Ratings has reaffirmed the AAA( fg)/ stable rating of Puncak Wangi Sdn Bhd’s Guaranteed IMTN Programme of up to RM2 0 0 mi l lion ( 2014/2022).
The enhanc ed rat ing ref lects an irrevocable and uncondit ional guarantee ext ended by Danajamin Nasional Berhad (rated AAA/ stable/ P1 by RAM), which enhances the credit standing of the IMTN beyond Puncak Wangi’s stand- alone credit strength.
Puncak Wangi, a property investment company wholly owned by Malaysian Resources Corporation Berhad ( MRCB), has signed a contract with Celcom Axiata Bhd ( Celcom) to build and lease to Celcom an office tower as its principal office.
To date, Puncak Wangi has yet to deliver the Office Tower, given that the revised timeline for the completion of Interior Design ( ID) works on September 2018, due to re- appointment of a new ID contractor by Celcom.
The overall base building had been ful ly completed in January 2018 while the progress of ID works was at 50 per cent as at end- June 2018 – on track based on the revised timeline. With minimal residual construction risk, we do not expect the completion of ID works to deviate much from the targeted September 2018, as 95 per cent of the ID has been finalised with Celcom.
Currently, the Company is negotiating a supplemental Agreement to Build and Lease (ATBL) with Celcom, which is anticipated to be signed by the end of the year.
Puncak Wangi is highly leveraged, with the bulk of the Office Tower’s development cost being funded by the IMTN and bank loans.
Puncak Wangi’s debt stood at RM328.63 million as at endDecember 2017 and is expected to peak at RM420 million as the company fully draws down its debt facilities to fund remaining construction costs as well as the repayment of its debt obligations. THE Malaysian rubber market ended mostly lower yesterday on softer demand dragged down by external sentiment, said a dealer.
She said regional rubber futures markets also weakened as traders turned cautious after US President Donald Trump escalated the trade friction between US and China with plans to impose 10 per cent tariffs on US$ 200 billion of Chinese imports.
“Nevertheless, further declines were capped by a weaker ringgit against the US dollar,” she said.
The local rubber market was closed on Monday in lieu of Malaysia Day which fell on Sept 16 ( Sunday).
At 12pm, the Malaysian Rubber Board’s of f icial physical price for tyre- grade SMR 20 was five sen easier at 541.0 sen a kg while latex-inbulk fell one sen to 414.0 sen a kg.
The unofficial closing price for tyre- grade SMR 20 traded f lat at 545.0 sen a kg, while latex-in- bulk shed 3.5 sen to 412.50 sen a kg. THE Kuala Lumpur Tin Market (KLTM) closed US$30 lower at US$18,940 a tonne yesterday from US$18,970 on last Friday on cautious sentiment, dealers said.
The overnight tin price on the London Metal Exchange (LME) eased US$ 55 to US$ 18,965 a tonne from US$19,020 a tonne.
A dealer said traders turned cautious after US President Donald Trump escalated the trade friction between US and China with plans to impose tariffs on US$200 billion of Chinese products.