LITERATURE REVIEW TAHUN 2007 TAJUK MARC ASSIGNS SHORT TERM RATING OF MARC-1-ID TO STRAIGHT AS PORTFOLIO SDN BHDS

RM200 MILLION MURABAHAH UNDERWRITTEN NOTES ISSUANCE FACILITY (MUNIF) PENULIS Anandakumar Jegarasasingam 0320902250/ kumar@marc.com.my; Eric Chua 03-20902245/ cheekiong@marc.com.my ISI The proposed transaction incorporates serial redemption commencing at the end of 5th year from the initial date of issuance for the MUNIF towards end of the facility tenure at the end of the 7th year. The progressive reduction of the MUNIF reduces the refinancing risk at the final maturity. Accordingly, MARC opines that Straight As no longer has the capacity to meet its obligations under the MUNIF without relying on external support

2009

MARC DOWNGRADES ITS RATINGS ON STRAIGHT AS PORTFOLIOS RM200 MILLION MUNIF FACILITY TO MARC-4ID; MAINTAINS MARCWATCH NEGATIVE MARC ISSUES UPDATE ON THE MARCWATCH NEGATIVE STATUS OF MARC-4ID RATING ON STRAIGHT AS PORTFOLIOS RM200 MILLION MUNIF FACILITY FOLLOWING THE DOWNGRADE OF OILCORP BERHADS RATINGS

Anandakumar Jegarasasingam 0320902250/ kumar@marc.com.my; Eric Chua 03-20902245/ cheekiong@marc.com.my Anandakumar Jegarasasingam 0320902250/ kumar@marc.com.my; Eric Chua 03-20902245/ cheekiong@marc.com.my

2009

MARC is of the view that the structural subordination risk faced by the noteholders of Straight As will be amplified by the adverse financial developments at its ultimate holding company, Oilcorp.

CONCLUSION Tan Sri Dato Sri Dr. Zeti Akhtar Aziz , Governor of Bank Negara Malaysia said The growth of the debt securities and sukuk market is spurred further through the large issuance and growing interest in sukuk which now forms an integral part of the Malaysian financial market.

The increasing pace of downward rating momentum that occurred was not unexpected as explained by the increasing share of issues placed on negative outlook since December 2008 when the economy started to depict signs of weakness. In the literature, many writers have said that Straight As no longer has the capacity to meet its obligations under the MUNIF without relying on external support. Although Oil-Line Engineering & Associates Sdn Bhd (OLEA) is intermediate holding company for Straight As, the ratings remain on negative.

We state that Straight As having a bankruptcy because its have been downgrades by MARC from MARC-1ID to MARCH-4ID. The rating action reflects Straight As failure to redeem or rollover its RM24 million of Islamic commercial papers (ICP) which were due on December 10, 2009.