Published on 28 September 2012
RAM Ratings has placed the AA1(s) rating of Pendidikan Industri YS Sdn Bhd’s (“PIYSB” or “the Group”) RM150 million Bai’ Bithaman Ajil Islamic Debt Securities (2008/2022) (“BaIDS”) on Rating Watch, with a negative outlook. The Rating Watch is premised on the protracted delay in the receipt of information from PIYSB’s management, despite repeated requests from RAM Ratings since June 2012. This has impeded our ongoing surveillance of the aforementioned debt securities. PIYSB is fully owned by Menteri Besar Selangor (Pemerbadanan) and provides educational services via Universiti Selangor (“Unisel”) and Inpens International College (“Inpens”) – both institutions of higher-learning established under the Private Higher Educational Institutions Act, 1996.
Meanwhile, RAM Ratings expects to resolve the Rating Watch within 3 months of this announcement, ideally through the successful completion of our review exercise. Nonetheless, if this avenue remains unavailable due to (but not limited to) the issuer’s inability to provide the requisite information, there may be downward pressure on the rating of PIYSB’s BaIDS or the rating could be suspended. For further details, please refer to our paper, Policy and FAQs on the Suspension or Withdrawal of Ratings by RAM Ratings, published in November 2009 and accessible via www.ram.com.my.
RAM Ratings' Rating Watch highlights a possible change in an issuer's existing debt rating. It focuses on identifiable events such as mergers, acquisitions, regulatory changes and operational developments that place a rated debt under special surveillance by RAM Ratings. In a broader sense, it covers any event that may result in changes in the risk factors relating to the repayment of principal and interest.
Issues will appear on RAM Ratings' Rating Watch when some of the above events are expected to or have occurred. Appearance on RAM Ratings' Rating Watch, however, does not inevitably mean that the existing rating will be changed. It only means that a rating is under evaluation by RAM and a final affirmation is expected to be announced. A "positive" outlook indicates that a rating may be raised while a "negative" outlook indicates that a rating may be lowered. A “developing” outlook refers to those unusual situations in which future events are so unclear that the rating may potentially be raised or lowered.
Woon Tien Ern
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