MARC has placed WCT Holdings’ Sukuk ratings on MARCWatch Developing. The rating action affects the RM1bn 15y MTN and RM1.5bn 15y Sukuk Murabahah programmes whose ratings of AA- and AA-IS respectively were affirmed with a negative outlook on October 7, 2015.
The alert reflects the potential change in the credit profile arising from the change in control and existing management at WCT Holdings. MARC is of the view that the group’s asset monetization and net debt reduction plans may be subject to change by the new management.
WCT Holdings’ major shareholders and founding members including managing director, Taing Kim Hwa, recently sold their equity stakes totalling 19.7 per cent to Dominion Nexus, a company that is substantially owned by Tan Sri Desmond Lim Siew Choon. Taing has since resigned as the MD of WCT Holdings and Tan Sri Desmond Lim has been appointed as executive chairman.
The ratings have been under pressure as a result of WCT Holdings’ high gearing level and diminished liquidity.
Taing Kim Hwa