MARC lowers Alam Maritim sukuk rating

PETALING JAYA: Malaysian Rating Corp Bhd (MARC) has downgraded loss-making Alam Maritim Resources Bhd’s sukuk rating to ‘D’ from ‘BB+’ following a missed sukuk principal payment of RM30 million on July 6.

The RM30 million payment is part of the outstanding RM75 million under its Sukuk Ijarah Medium-Term Notes programme.

“Concurrently, the rating has been removed from MARCWatch Negative where it was placed on May 30, 2017. Alam Maritim is a major domestic offshore support vessel provider for the oil and gas industry,” MARC said in a statement.

The group incurred a narrowed net loss of RM11.89 million for the first quarter ended March 31, 2017 against RM19.19 million in the previous corresponding period.

Separately, Alam Maritim said in a filing with Bursa Malaysia that the group and its subsidiaries, joint venture companies and associate companies are in active discussions and negotiations with their respective financiers and sukuk holders to restructure the repayment terms and conditions of the existing loans/financing facilities and sukuk programme.

Alam Maritim is required to submit a proposed debt restructuring scheme within 60 days from the date of the approval letter dated May 25, 2017 issued by the corporate debt restructuring committee of Bank Negara Malaysia.