MARC DOWNGRADES RATINGS OF SUPER SENIOR B, SENIOR, MEZZANINE AND SUBORDINATED CLO BONDS ISSUED BY PRIMA UNO BERHAD

Jan 31, 2012 -

MARC has downgraded its rating on Prima Uno Berhad’s (Prima Uno) RM335 million Super Senior B primary collateralised loan obligation (CLO) bonds to D from A-. Furthermore, the C ratings on the remaining classes of RM190 million Senior, RM40 million Mezzanine and RM95 million Subordinated CLO bonds have been downgraded to D. At the same time, MARC has removed its AAA rating for the RM290 million Super Senior A CLO bonds following early redemption of its outstanding amounts on November 25, 2011. Prima Uno is the special purpose company that was established to issue the CLO bonds backed by a portfolio of newly originated unsecured loans.

The downgrades for the respective classes reflect Prima Uno’s failure to make full payment of outstanding principal on their maturity date of January 26, 2012. MARC received confirmation from the facility agent that RM253.74 million of Super Senior B bonds were redeemed, representing a partial redemption of 75.7% of its outstanding principal amount. The facility agent also confirmed that there were no principal redemptions for the Senior, Mezzanine and Subordinated bonds on their maturity date.

As of the date of this press release, only 8 of the 33 obligors comprising the loan pool have repaid their outstanding principal in full while two obligors made partial principal repayment. There have been no recoveries to date in respect of the earlier defaulted loans.

Following the downgrades, MARC will no longer conduct any rating surveillance on the CLO bonds’ ratings.

Contacts:
Ruben Khoo, +603-2082 2265/ rubenkhoo@marc.com.my;
Sandeep Bhattacharya, +603-2082 2247/ sandeep@marc.com.my.