KUALA LUMPUR: Malaysian Rating Corporation Bhd (MARC) has downgraded Serba Dinamik Holdings Bhd’s Islamic Medium-Term Notes Programme (IMTN) rating to CIS from BBIS//Negative.

       Serba Dinamik’s Islamic Commercial Papers (ICP) rating remains at MARC-4IS which is the lowest category under the non-investment grade, reflecting the heightened risk of non-repayment on the outstanding RM100mil ICP.

       “MARC’s downgrade action is premised on the missed semi-annual coupon payment of US$7mil on the outstanding US$222mil senior sukuk issued by Serba Dinamik’s wholly-owned indirect subsidiary, SD International Sukuk Ltd,” it said in a statement.

       The coupon payment was due on Nov 9, 2021 and the company confirmed that no payment was made during the 30-day grace period which ended on Dec 9, 2021.

       “As a result of this default, there is now an increasing likelihood of a cross default trigger under the IMTN/ICP programmes. Should sukukholders declare an event of default, the ratings of both programmes will be downgraded to DIS,” it said.