RAM Ratings withdraws SPLASH’s debt rating, discontinues rating updates on proposed bonds of Destinasi Teguh and Sungai Harmoni

Published on 30 June 2011

RAM Ratings has withdrawn the rating of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd’s (SPLASH or the Company) RM1,407 million Al-Bai Bithaman Ajil Debt Securities Issuance Facility (BaIDS) (2000/2016), and will no longer maintain rating surveillance on the debt facility. This follows the Company’s request for the withdrawal of its debt rating.

Prior to the rating withdrawal, the BaIDS had carried a BBB3 rating, which had been on negative Rating Watch. The negative Rating Watch had reflected SPLASH’s strained liquidity profile arising from poor collections from its sole counterparty, Syarikat Bekalan Air Selangor Sdn Bhd, amid the protracted restructuring of Selangor’s water industry. RAM Ratings highlights that if the debt facility had remained under surveillance, the rating would have been subjected to further downward pressure.

Meanwhile, the management of both Destinasi Teguh Sdn Bhd and Sungai Harmoni Sdn Bhd has requested that the ratings of their proposed bond issues be kept private. As such, RAM Ratings will no longer provide rating updates on the proposed bond issues of Destinasi Teguh Sdn Bhd and Sungai Harmoni Sdn Bhd.

Media contact
Chew Wei Li
(603) 7628 1025
weili@ram.com.my