KUALA LUMPUR (Dec 10): Malaysian Rating Corp Bhd (MARC) has downgraded Serba Dinamik Holdings Bhd's Islamic Medium-Term Notes (IMTN) rating to CIS from BBIS/Negative.
In a statement on Friday (Dec 10), MARC said Serba Dinamik's Islamic Commercial Papers (ICP) rating remains at MARC-4IS, which is the lowest category under the non-investment grade, reflecting the heightened risk of non-repayment on the outstanding RM100 million ICP.
MARC said the downgrade action is premised on the missed semi-annual coupon payment of US$7 million on the outstanding US$222 million senior sukuk issued by Serba Dinamik's wholly-owned indirect subsidiary, SD International Sukuk Ltd.
"The coupon payment was due on Nov 9, 2021 and the company confirmed that no payment was made during the 30-day grace period which ended on Dec 9, 2021.
"As a result of this default, there is now an increasing likelihood of a cross-default trigger under the IMTN/ICP programmes.
"Should sukuk holders declare an event of default, the ratings of both programmes will be downgraded to DIS," it said.