Malaysian Rating Corp Bhd (MARC) has downgraded its ratings on Tanjung Langsat Port Sdn Bhd’s (TLP’s) RM250mil sukuk musyarakah bonds and RM135mil musyarakah commercial papers/musyarakah medium-term notes programme (MCP/MMTN) to BBB+IS and MARC-3ID/BBB+ID from A-IS and MARC-2ID/A-ID respectively.
The downgrade reflects TLP’s continued losses and weak cashflow which arose from a delay in the commencement of its port operations. This has resulted in erosion of its shareholders’ funds and heavy reliance on sale of land to meet its principal repayments which commenced in July 2012………………………………………..Full Article: Source