MARC MAINTAINS REVIEW ON OFFSHOREWORKS CAPITAL'S SUKUK RATINGS

Dec 16, 2011 -
MARC is maintaining its review of the BBIS and MARC-4IS Sukuk ratings of funding vehicle Offshoreworks Capital Sdn Bhd (OWC) for further downgrade due to a continuing lack of clarity about the issuer's liquidity situation, annual and interim results of its parent company and the progress of debt restructuring negotiations with sukukholders. The rating agency had previously commented that its ratings review would focus on the outcome of OWC's debt restructuring negotiations and the near-term financial profile of oilfield services provider Offshoreworks Holdings Sdn Bhd (OHSB).

Since MARC's decision to extend its review on the sukuk ratings in September 2011, OWC has yet to disclose the details of the restructuring plans proposed by OWC to its sukukholders and to make available its audited financial statements of OHSB for the financial year ended December 31, 2010. MARC has been unable to conclude its review and believes that it has insufficient access to adequate public and/or non-public information to maintain ratings on the sukuk. OHSB's unaudited financial statements for 2010 had indicated that the group was in a tenuous financial position with negative shareholders funds of RM56.8 million and modest cash balances. The rating agency is concerned that OHSB's financial profile could have experienced further deterioration in its credit profile since then.
The rating agency will likely withdraw or suspend the ratings within the next 30 days if the requested information is not forthcoming.

Contacts:
Sabesh Parameswaran, +603-2082 2260/ sabesh@marc.com.my;
Francis Xaviour Joe, +603-2082 2279/ fxjoe@marc.com.my