Published: Friday May 18, 2012 MYT 5:34:00 PM
RAM Ratings: Pasdec's AAA rating unaffected by delay
KUALA LUMPUR: RAM Rating Services Bhd said the AAA(s)/stable rating of Pasedec Holdings Bhd's RM150mil bonds are unaffected by the delay in the submission of its audited financial statements for FY ended Dec 31, 2011.
Pasdec had issued RM150mil rainbow exchangeable bonds (REB) (2006/2013). It is the main property-development arm of Perbadanan Kemajuan Negeri Pahang, which has a 52% stake.
"The enhanced rating is based on the irrevocable and unconditional put option agreement granted by the Pahang Government to the security trustee, for the benefit of the REB holders, with approval from the Federal Government," it said.
RAM Ratings said this put option enhanced the REBs' credit profile beyond Pasdec's inherent or stand-alone credit strength.
The REBs are secured by and exchangeable into a pool of option shares. The put option requires the state to purchase the option shares from the security trustee at the option price during the option period, upon the occurrence of a trigger event or event of default.
RAM Ratings said the option price reflects the aggregate of the nominal amount of the REBs, their redemption premium and coupon payments, and all other outstanding amounts.
The option price is not determined by the market price of the respective shares. Proceeds from the purchase of the option shares will subsequently be used to redeem the REBs.
According to Bank Negara Malaysia's FAST website, the outstanding nominal amount of REBs is currently RM4mil.