MARC Ratings has downgraded the ratings of Serba Dinamik Holdings Berhad’s Islamic Medium-Term Notes (IMTN) and Islamic Commercial Papers (ICP) programmes from CIS/MARC-4IS to a default rating of DIS. The ratings had been lowered to CIS/MARC-4IS on December 10, 2021 when it failed to meet a coupon payment on an outstanding USD sukuk issued by its wholly-owned subsidiary.
The downgrade to DIS follows the declaration of an event of default by the ICP sukukholder, which is the outcome of a cross-default trigger on the IMTN/ICP programmes following the aforementioned missed coupon obligation. The outstanding under the ICP programme of RM100.0 million is due in May 2022.