MARC ISSUES RATING UPDATE ON WCT HOLDINGS BERHAD’S DEBT RATINGS

MARC is issuing this update on WCT Holdings Berhad (WCT Holdings) following the recent announcement by its subsidiary WCT Land Berhad that it will acquire 89.3 hectares of land parcels in Serendah, Selangor, for RM115.4 million. The land parcels, which are adjacent to the group’s existing land bank, are expected to provide a fairly large contiguous land area for potential township development. The purchase is to be funded from the group’s existing cash balances, which stood at RM428.7 million as at June 30, 2014.

The rating agency assesses the land acquisition to be relatively modest and should have no material impact on the group’s credit profile. WCT Holdings has sufficient financial flexibility to meet its debt obligations of RM400.0 million due under the rated programmes in 2015. Nonetheless, the rating agency will continue to monitor developments, in particular the impact of incremental borrowings on the group’s financial profile. WCT Holdings’ existing debt ratings with MARC are listed below:-

·           RM300.0 million 7-year Islamic Commercial Paper/Islamic Medium-Term Notes (MTN) Programme rated MARC-1_ID / AA-_ID/ Stable;

·           RM600.0 million 5-year Fixed Rate Serial Bonds rated AA-/ Stable;

·           RM1.0 billion 15-year MTN Programme rated AA-/ Stable; and

·           RM1.5 billion 15-year Sukuk Murabahah Programme rated AA-_IS/ Stable_.

Contacts: Jasmine Kua, +603-2082 2280/ jasmine@marc.com.my; Yap Lai Ken, +603-2082 2247/ laiken@marc.com.my.

November 10, 2014