Friday, April 6, 2012

Silver Bird’s ratings downgraded to D after default




Published on 05 April 2012

RAM Ratings has downgraded the ratings of Silver Bird Group Berhad’s (“SBGB” or “the Group”) RM30 million Commercial Papers/Medium-Term Notes Programme (2005/2012) (“CP/MTN”), from C3/NP to D. Concurrently, the Rating Watch (with a negative outlook) on SBGB has been lifted.

The downgrade is premised on Facility Agent AmInvestment Bank Berhad’s announcement through the Fully Automated System for Issuing/Tendering (or FAST) that SBGB had failed to redeem RM15 million of its outstanding CP/MTN on the scheduled maturity date of 5 April 2012.

On 1 March 2012, RAM Ratings had downgraded SBGB’s ratings from A2/Negative/P2 to C3/RW (Negative)/NP, following defaults on some of its banking facilities and alleged irregularities in the Group’s accounts. At the same time, 3 key personnel (the group managing director, the executive director and a senior member of its management team) had been suspended.

Based on SBGB’s announcement on 2 April 2012, the Group had defaulted on RM45.36 million of banking facilities and is currently communicating with its lenders on various options to regularise the defaults. With the maturity of the CP/MTN, RAM Ratings no longer has any rating obligations on the CP/MTN.

Media contact
Low Pui San
(603) 7628 1051
puisan@ram.com.my

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