PETALING JAYA: Malaysian Rating Corp Bhd (MARC) is maintaining its negative outlook rating on Olympia Industries Bhd while affirming the company's RM72.98mil redeemable unsecured loan stocks (RULS) at BB-.
The rating agency said in a press release that the action was due to continued concern on Olympia's weak profitability measures and earnings sustainability for the company's property and gaming divisions.
It noted the slow progress made in the company's property project while the gaming segment would be negatively impacted by the 2% increase in pool betting duty effective from June 2010.
MARC said Olympia's liquidity position as reflected by cash and cash equivalents of RM34mil as of September 30 was inadequate to meet its short term debt of RM49.6mil, which included the redemption of RM12.9mil under the RULS in April 2011.
In a separate announcement, the rating agency said DutaLand Bhd's outlook was revised to stable from negative while the company's outstanding RM26.3mil RULS was affirmed at B.
“The affirmed rating and outlook revision incorporates DutaLand's improved operating performance, although earnings remain vulnerable to the company's ability to execute the later phases of its high-end property project,” it said.
and its sizeable borrowings relative to its cash generation ability,” it added.
