online casino bluebook - online casino gambling guide, to top ranked online casinos and reviews of over 200 gambling related websites. www.onlinecasinobluebook.com also host a casino forum, blog, and casino news articles
RAM: Economic recovery fragile but outlook brighter this year
Written by Ellina Badri
Wednesday, 10 March 2010 10:23
KUALA LUMPUR: The outlook for the year is brighter than in 2009, though the global economic recovery is still fragile, said RAM Rating Services Bhd.
“2010 will not be a year without challenges and risks, but prospects are more encouraging than a year ago.
“RAM forecasts a 4.9% GDP expansion for Malaysia in 2010, underpinned by positive growth for all broad industry categories, including agriculture, mining, construction, manufacturing and services,” RAM CEO Liza Mohd Noor said.
She was speaking to reporters at a briefing following RAM’s Investor Breakfast Meet 2010 here yesterday.
RAM group chief economist Yeah Kim Leng said while the country had braced for a pronounced slowdown last year, this turned out to be a “hard landing” with the current recovery momentum gaining pace.
“The theme we see this year is a positioning for a growth pick-up in the corporate sector,” he said.
However, he said after last year’s massive inventory run-down, re-stocking would contribute to higher production this year, but self-sustaining growth would have to come from private sector-led growth.
“Consumer and investor confidence remains a short-term key factor while investment and productivity increases must occur to enable high and sustained economic growth over the medium-to-long-term horizon.”
He said this year, growth here would be propped up by local and improving external demand, especially from within the region, as growth in the G3 countries were expected to remain weak and uneven.
The local economy should resume modest growth this year with an upward bias if public sector reform and transformation policies further strengthened consumer and investor confidence and trigger a surge in domestic and foreign direct investment, he said.
Yeah said RAM expected consumer spending to grow between 4% and 5% this year, representing half of trend growth, due to a gradual pick-up in consumer and investor confidence, aided by supportive monetary and fiscal policies.
He also said Malaysia was in a strong position to capitalise from trade and investment opportunities arising from regional integration and trade agreements.
Of other economic indicators, he said the interest rate was expected to rise by another 50-70 basis points this year, to between 2.75% and 3% by year-end, while inflation was expected to remain benign at 2.5%.
He said this inflation rate was still moderate and below trend, and would likely be cost-push rather than demand-pull, adding however, should the government pushed through with raising the minimum wage, the country could see some wage-push inflation.
He said the ringgit was expected to strengthen to between RM3.20 and RM3.30 to the US dollar by year-end, supported by better growth, high current account surplus and international reserves, positive interest rate differentials and low inflation.
He said the country could “cope” with the government’s targeted 5.1% budget deficit this year, but added that it was important for the economy to shift to private sector-led growth.
“The government debt level of around 50% of GDP last year, which grew from 40% due to fiscal stimulus actually pales in comparison to AAA-AA rated countries. The rule of thumb for government debt is around 60% of GDP, so we are able to sustain a higher deficit if we need to,” he said.
This article appeared in The Edge Financial Daily, March 10, 2010.
MARC removes Petra Perdana's RM800m debt notes from MarcWatch
Written by Malaysian Rating Corp
Thursday, 18 March 2010 15:31
KUALA LUMPUR: Malaysian Rating Corp (MARC) has removed its ratings on PETRA PERDANA BHD []’s RM400 million secured serial bonds and RM400 million medium term notes from MARCWatch Developing, where they had been placed on Dec 16, 2009 after the sale of a 25.03% stake in PETRA ENERGY BHD [].
MARC said on Thursday, March 18 it had affirmed its A+ debt ratings on Petra with a stable outlook.
The affirmed ratings primarily reflect MARC’s view that the near-term impact of the divestment on Petra's credit profile is limited as a result of the use of the RM93.2 million proceeds to significantly reduce its syndicated loan borrowings.
MARC expects Petra's near-term debt service capacity and liquidity to remain consistent with the current rating level, notwithstanding its significant debt maturities and capital commitments in FY2010.
MARC will, however, continue to monitor Petra's earnings and cash flow generation in the coming quarters to assess the longer-term impact of the divestment on its balance sheet and credit profile.
The disposal of Petra Energy shares has reduced Petra’s stake in Petra Energy to 29.59% (June 30, 2009: 60%). Petra Energy’s integrated brownfield services operations, which generate steady earnings from its major topside maintenance contracts, contributed RM37.1 million or 45.2% of Petra's FY2009 unaudited consolidated operating profits.
While the deconsolidation of Petra Energy will affect group level revenues and possibly operating margins at Petra, MARC opines that this is somewhat compensated by Petra’s reduced debt levels and debt servicing commitments in the near-term.
Petra currently operates a fleet of 22 offshore support vessels and is expected to take delivery of five new vessels by end-2010. Petra's marine services division experienced a significant contraction in its operating profit margin to 8.9% (FY2008: 27.5%) in FY2009 amid lower capacity utilisation and moderating charter rates.
However, expectations of stable crude oil prices in 2010 are likely to lead to a recovery in the industry’s exploration and production activities and an improvement in Petra’s capacity utilisation in FY2010.
Petra was able to secure several long-term contracts in 1Q2010. At the same time, MARC notes that Petra Energy is the holder of the group's Petronas license and believes that existing bidding and revenue-sharing arrangements could exert pressure on reported consolidated operating margins upon deconsolidation of Petra Energy.
The company’s cash and cash equivalents of RM 179.7 million as at Dec 31, 2009 and proceeds from sale of vessels collected from Petra Energy in January 2010 amounting to RM37.6 million provides Petra with liquidity to meet its RM218 million of immediate debt repayments in FY2010, including early repayment of RM108 million arising from divestment of Petra Energy shares.
Petra's debt servicing ability beyond 2010 will depend on the cash flow generation ability of the group’s assets, in particular its vessels.
Notwithstanding the stable outlook, the ratings and the outlook could come under pressure should Petra's operating performance and debt protection measures be weaker-than-expected.
Fitch downgrades Ranhill's credit rating outlook
Written by The Edge Financial Daily
Sunday, 21 March 2010 22:24
KUALA LUMPUR: Fitch Ratings has downgraded RANHILL BHD []'s credit rating outlook to negative from stable, while reaffirming its long-term foreign currency issuer default rating (IDR) at B.
Fitch said last Friday, March 19, that at the same time, it had affirmed the B- senior unsecured rating on the US$220 million (RM728 million) notes due 2011 issued by Ranhill (L) Ltd and guaranteed by Ranhill and its subsidiaries.
It said the revision of the outlook to negative reflected refinancing risks associated with the notes. Fitch said Ranhill currently had no firm plans to address this debt maturity and Ranhill's challenges included its limited unencumbered asset base and restricted access to US dollar bond markets.
Fitch said Ranhill's IDR reflected the volatile cash flows and risks associated with fixed-price engineering and CONSTRUCTION [] (E&C) contracts which accounted for a majority of its revenues (60% of total revenues in FY09).
It said the rating also took into account Ranhill's still weak liquidity, despite improvements to its cash flows following the federalisation of its water assets in Johor in 2009.
Fitch said Ranhill's E&C operations had historically suffered from cost overruns and project delays. It said although many of its loss-making projects had been completed, or were nearing completion, there was significant concentration on the E&C order book, with a housing project in Libya accounting for over 70% of its order book.
The rating agency expects the Johor water operations to generate Ebitda of RM150 million-RM200 million per year, with limited capex under the new operating and management model. It said about RM2.5 billion of debt associated with the former water concession was removed with the federalisation of assets and this improved consolidated indebtedness — RM1,789 million in December 2009 from RM4,074 million in June 2008 — and financial leverage — 3.4 times in 1H10 from 10.3 times in FY08 (measured by adjusted debt net of cash to operating Ebitdar).
Fitch notes that Ranhill is on track to increase its power generation capacity with its second power plant currently under construction.
It said the proceeds received from the water asset federalisation — of RM845 million — had been utilised to repay some debts at its water-operations level, and a bridge loan obtained by Ranhill to partially fund the capex of the second power generation plant.
Nevertheless, it said Ranhill's liquidity position was still relatively weak. At group level, Ranhill had RM503 million of cash reserves at December 2009, of which RM204 million was in restricted accounts backing various debt obligations of the group
MARC downgrades rating on Malaysian Merchant Marine's RM120m debt notes
Written by Malaysian Rating Corporation
Friday, 02 April 2010 18:08
KUALA LUMPUR: Malaysian Rating Corporation Bhd (MARC) has downgraded its rating on MALAYSIAN MERCHANT MARINE BHD []’s (MMM) RM120 million Al Bai’ Bithaman Ajil Islamic debt securities (Ba IDS) to DID from CID.
It said on Friday, April 2 that concurrently, MARC removed MMM’s rating from MARCWatch Negative, where it was placed on March 17 to reflect heightened concerns of imminent default.
"The rating action follows MMM's failure to meet an accelerated repayment of the BaIDS which became immediately due and payable subsequent to the declaration of an event of default and notice of the same by the trustee and security trustee on March 29, 2010," MARC said.
MMM announced its default in payment on March 30 to Bursa Malaysia, where it also disclosed it had become insolvent and would not be able to pay any portion of the BaIDS.
"Following the downgrade to DID, MARC will no longer undertake any rating surveillance on the BaIDS," MARC said.
Wednesday June 9, 2010 Water firms placed on ‘MARCWatch negative’ By IZWAN IDRIS
It says uncertainty and hurdles in the restructuring process causing concern
PETALING JAYA: The ratings of companies involved in the water sector in Selangor were placed under “MARCWatch negative” by Malaysian Rating Corp Bhd (MARC) due to “high level of uncertainty associated with the restructuring of the sector.”
The rating action affects debt papers issued by Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga (M) Sdn Bhd, Puncak Niaga Holdings Bhd, RUN Holding SPV Bhd, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd, Viable Chip (M) Sdn Bhd and Titisan Modal Sdn Bhd
“The MARCWatch placements reflect MARC’s immediate credit concerns over the impact of Syabas’ continued inability to meet in full its monthly bulk water payment obligations to water-treatment operators as the result of the former’s unresolved water tariff hike,” MRCB said in a press release yesterday.
A water tariff hike in Selangor, which was supposed to be implemented from January last year, has been deferred indefinitely.
MARC believed that “the significant hurdles” in the restructuring process, in particular the protracted negotiations between the Selangor state and water players, “do not bode favourably towards attaining a timely and orderly resolution” of the industry restructuring related issues.
Syabas staff checking for leakage at one of water-treatment plants
Hence, the rating agency believed that the contraints on “certain water-treatment operators” would become more acute in the coming quarters, as debt service reserves declined and expected revenue cash flow fell behind earlier projections.
MARCB said it would adjust the ratings “as warranted” to incorporate the shortening timeline towards potential defaults for the more severely affected issuers upon completing its review for potential downgrades.
Negotiations to resolve the water tariff issue in Selangor between the state government and water players started two years ago, but details on the progress had been sketchy at best.
Meanwhile, concessionaire Splash, which is 40% owned by Gamuda Bhd, had made a bid to take over all water concessionaires in Selangor for RM10.75bil - a higher price than the state’s last offer of RM9.2bil.
Splash’s bid seemed to have the backing of the Federal government after a revised offer in April that saw the participation of Pengurusan Aset Air Bhd (PAAB), in compliance with the asset-light condition spelled out under the Water Services Industry Act.
Under the deal offered by Splash, PAAB would pay RM8.1bil for the assets to be topped up with RM2.6bil from Splash.
RAM Ratings revises IRIS Tech's debt issues to stable Written by RAM Ratings
Wednesday, 09 June 2010 12:33
KUALA LUMPUR: RAM Ratings has revised the outlook on the long-term ratings of IRIS Technologies (M) Sdn Bhd's (IRIS Tech) RM60 million Bai' Bithaman Ajil Islamic Debt Securities (2003/2010) (BaIDS) and RM40 million Murabahah Commercial Papers/Medium-Term Notes Programme (2004/2011) (CP/MTN) from negative to stable.
The BaIDS and CP/MTN are currently rated A3 and A3/P2, respectively.
In a statement on Wednesday, June 9, RAM Ratings said the change in outlook was premised on the sustained improvement in financial profile of IRIS CORPORATION BHD [], the parent company IRIS Tech; referred to collectively as IRIS Corp or the Group.
The Group also has secured financing arrangements to prepay IRIS Tech's BaIDS and CP/MTN, thus alleviating previous concerns about its liquidity position, said the rating agency.
The ratings reflect the Group's established track record as the sole supplier of MyKads and e-passport substrates in Malaysia, it said.
"Meanwhile, the group has increased its geographical diversity, with overseas projects accounting for 52% of its turnover in FY December 2009 (FY December 2008: 47%).
"IRIS Corp recorded RM56.79 million in operating profit before depreciation interest and tax in FY December 2009 on the back of RM331.73 million turnover (FY December 2008: RM44.52 million and RM285.60 million, respectively)," it said.
In tandem with its improving profitability and cashflow generation, the Group's funds from operations debt cover inched up to 0.37 times in FY December 2009.
Elsewhere, with the repayment of IRIS Corp's BaIDS as well as other borrowings, the Group's gearing ratio ameliorated to 0.44 times as at end-March 2010.
Nonetheless, the ratings remain moderated by the Group's exposure to earnings and cashflow volatility due to the lumpiness of its project-based revenue, it said.
"Given that most of its contracts are with foreign governments, IRIS Corp is exposed to country risk, ie changes in government policies, economic conditions and political developments, especially in less developed countries.
"In other developments, the Group has signed several agreements with regard to its environment-solutions business; more detailed assessment of these projects will be conducted as greater clarity emerges," said RAM Ratings
MALAYSIAN Rating Corp Bhd (MARC) has given a "AA-" rating to Sports Toto Malaysia Sdn Bhd's (1562) proposed medium term notes programme of up to RM800 million.
This is based on the reliability of Sports Toto's cash flow from its number forecast operations (NFO), its leading and entrenched market position in the gaming industry and modest capital expenditure requirements.
The company has been paying high dividends and its immediate holding company owes Sports Toto substantial amounts, which made up 75.4 per cent of its current assets as at April 30 2009, MARC said in a statement yesterday.
"MARC believes that the this will give rise to credit linkages between Sports Toto and its immediate holding company. The stable rating outlook incorporates MARC's expectation that Sports Toto's cash flow stability, which underpins its strong historical financial performance, will continue in the medium term."
A wholly-owned subsidiary of Bursa Malaysia-listed Berjaya Sports Toto Bhd (BToto), Sports Toto is one of a select few gaming operators in the country licensed to operate NFO draws.
Although the gaming licence is exposed to the risk of non-renewal on an annual basis, this is offset by Sports Toto's track record in the gaming sector and the sizeable tax it pays on its earnings in common with NFO players.
As of December 31 2009, Sports Toto remains the market leader with a share of 41.1 per cent in terms of NFO gaming sector revenue compared with its nearest rival Magnum Corp Bhd, which has a 36.4 per cent share, and Tanjong Plc's 22.5 per cent share.
RAM Ratings reaffirms AA3/P1 ratings of Naim's Islamic securities
Written by RAM Ratings
Tuesday, 15 June 2010 15:56
KUALA LUMPUR: RAM Ratings has reaffirmed the respective long- and short-term ratings of AA3 and P1 for NAIM HOLDINGS BHD []'s (Naim) RM500 million Islamic Medium-Term Notes Programme (2010/2025) and RM100 million Islamic Commercial Papers Programme (2010/2017) (collectively known as the Islamic Securities) with a stable outlook.
Naim is a property-development and CONSTRUCTION [] group based in Sarawak.
It holds a 36% stake in Dayang Enterprise Holdings Berhad, a listed provider of oil and gas support services.
The ratings reflect Naim's strong track record in securing numerous federal and state government-funded construction projects in Sarawak, said RAM Ratings in a statement Tuesday, June 15.
Naim also is anticipated to win more contracts this year as more jobs are expected under Budget 2010, the Sarawak Corridor of Renewable Energy and the Tenth Malaysia Plan, it said.
RAM Ratings' head of real estate and construction ratings Shahina Azura Halip said these initiatives, coupled with Naim's healthy outstanding order book of RM1.17 billion (as at end-March 2010), were expected to sustain the group's earnings over the next few years.
"Nonetheless, Naim's margins are expected to become narrower amid more competitive contract bidding," she said.
RAM Ratings said Naim was also one of the largest and more well-known property developers in Sarawak.
However, its unbilled sales dwindled from RM175 million as at end-August 2008 to RM79 million as at end-March 2010, due to fewer launches amid the subdued property market last year, it said.
Nonetheless, the group's low holding costs vis-à-vis over 2,400 acres of undeveloped land allow it the flexibility to defer launches according to market conditions, it said.
"Meanwhile, Naim's net gearing ratio stood at a healthy 0.02 times as at end-March 2010. Moving forward, the group is expected to progressively gear up to fund land acquisitions and working capital.
"All said, its gearing and funds from operations debt coverage ratios are still expected to remain healthy at around 0.5 times and 0.2-0.3 times, respectively," it said.
On the other hand, the rating agency said Naim's strengths were moderated by the uncertainties vis-à-vis its foreign ventures, particularly its maiden venture in Fiji, due to their unfamiliar operating and regulatory environments.
Since most of Naim's operations are based in Sarawak, however, this exposes the group to geographical-concentration risk, it said.
"As its property projects are mainly limited to Miri, any upside potential for its property division will be capped by the performance of Sarawak's property market.
KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has downgraded its ratings on Hytex Integrated Bhd’s RM100mil murabahah underwritten notes issuance facility/Islamic medium term notes (MUNIF/IMTN) to MARC-4ID/B+ID from MARC-3ID/BBB-ID.
Hytex’s rating outlook has been revised to negative from stable, the rating agency said in a statement yesterday.
The rating action followed Hytex’s partial deferment of an interest payment on a collateralised loan obligation due on July 21, 2010, which has heightened repayment risks for the MUNIF/IMTN, MARC said.
“MARC understands that a groupwide restructuring exercise is being implemented by Hytex to address all of its debt obligations,” it said.
According to MARC, Hytex has continued to register weak financial performance with a pre-tax loss of RM30.6mil for the unaudited financial year ending March 31, 2010.
Its debt-to-equity ratio rose to 2.83 times from 1.90 times a year ago, the rating agency said.
While Hytex recorded positive cash flow from operations of RM12.7mil in financial year 2010, this has been insufficient to service its debt obligations, MARC said. — Bernama
Pre-tax profit rise won’t affect TNB’s ratings, says MARC
KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) AA+/MARC-1 with stable outlook ratings will not be affected following its announcement of pre-tax profit before foreign exchange (forex) translation gains of RM2.85bil for the nine months ended May 31.
In a statement here yesterday, the Malaysian Rating Corp Bhd (MARC) said while TNB’s third quarter (Q3FY2010) net profit had risen 10.8% from the second quarter boosted by forex translation gains of RM569.1mil, the company had indicated the upward trend in coal prices had recently begun to exert pressure on its margins.
“The impact of rising coal prices on its margins and financial results in recent quarter had been mostly cushioned by the appreciation of the ringgit against the US dollar and yen, and electricity demand growth,” it said.
MARC said the stronger operating performance led to an improvement in liquidity and a net debt reduction of about RM300mil during the nine-month period.
It said TNB’s electricity tariffs were last revised in March 2009, and despite reviews every six months as fuel prices were adjusted, the company had yet to secure approval for a tariff increase in 2010.
MARC said meanwhile, the average coal prices had risen 15.4% from US$79.4 per tonne in Q1 to US$91.6 per tonne in Q3, although the appreciation of the ringgit against the greenback had somewhat moderated the impact of higher coal prices.
It said the cost of private power purchases, which made up about 48% of operating expenses, also increased, but by a smaller percentage of 6% for the first nine months of FY2010 from the previous corresponding period (FY2009:25.1% year-on-year increase). It said the prospects of a near-term tariff adjustment and continued electricity demand growth were both tied to the country’s economic performance.
“TNB is favourably positioned within its rating category owing to its strong reported earnings and cashflow in recent quarters, in addition to its improved liquidity profile,” it said. — Bernama
