RAM withdraws ratings of Mecuro Properties’ Senior Bonds and Guaranteed Class D Bonds

RAM Ratings has withdrawn the following ratings of Mecuro Properties Sdn Bhd’s (Mercuro Properties) senior bonds and guaranteed Class D bonds subsequent to their full redemption on January 30, 2018.

The bonds were issued under the Company’s RM900 million nominal value bonds (2012/2019).

The senior bonds comprise the Senior Class A2, Senior Class B, and Senior Class C Bonds, while the guaranteed bonds consist of the Guaranteed Class D1 and Guaranteed Class D2 Bonds.

The rated amounts for Senior Class A2 amounted to RM105 million, while Senior Class B and Senior Class C amounted to RM12 million and RM15 million respective. y The ratings were reaffirmed as AAA/Stable.

Meanwhile, the Guaranteed D1 was rated AA2( bg)/ Stable with RM209 million rated, while Guaranteed D2 was rated AAA( fg)/ Stable with RM209 million rated.

The withdrawal follows c o n f i rmat i o n t h at the requirements of the settlement notice dated January 15, 2018 in relation to the second property call option to purchase both The Curve shopping mall and Royale Chulan the Curve had been fulfilled on 19 January 2018.

Proceeds from the disposal of these assets had been used to fully redeem the RM550 million of bonds due on the expected maturity date.

Po s t - r e d e m p t i o n , the outstanding RM210 million of Guaranteed Class E Bonds would be supported by the remaining collateral in the portfolio, i. e., eCurve and Menara Affin.

RAM notes that the next and final property call option, to be exercised by January 31, 2019, is specific to the purchase of eCurve and Menara Affin.

The proceeds from the disposal of the assets are expected to be used for the redemption of Mecuro’s Guaranteed Class E Bonds on their expected maturity date of 31 July 2019.

The rating of the Guaranteed Class E Bonds was last reaffirmed at AAA(fg)/Stable, reflecting an unconditional and irrevocable guarantee extended by Danajamin Nasional Berhad.

Mecuro is a special- purpose vehicle incorporated as a funding conduit for a sale-and-leaseback transaction backed by a portfolio of 5 properties.

The originators of the properties are subsidiaries of Bursa Malaysialisted Boustead Holdings Berhad, a diversified conglomerate and flagship investment asset of Lembaga Tabung Angkatan Tentera.