MARC has placed its ratings of MARC-1IS /A+IS on Serba Dinamik Holdings Berhad’s (Serba Dinamik) RM500.0 million multi-currency Islamic Commercial Papers Programme and RM1.5 billion Islamic Medium-Term Notes Programme with a combined limit of RM1.5 billion on MARCWatch Negative. The ratings were assigned on May 11, 2021.
The MARCWatch placement arose from issues pertaining to the group’s annual accounts for financial year ending December 31, 2020. The rating agency notes that Serba Dinamik has addressed these issues in its recent briefing on May 29, 2021, which include customer confirmation on sales transactions and trade receivables following matters raised by external auditor KPMG PLT on May 3, 2021 pertaining to the statutory audit of the group for FY2020.
MARC wishes to highlight that in its rating assessment on Serba Dinamik, the rating agency had incorporated the group’s unaudited financial statements for FY2020. The aforementioned issues have raised concerns on some of the group’s transactions for FY2020, hence the MARCWatch placement. Serba Dinamik is undertaking measures to resolve its audit issues for FY2020, which include the appointment of an independent reviewer for the issues raised on its accounts for FY2020.
MARC will resolve the placement based on the outcome of the independent review, including clarification of the matters that have been raised. The ratings would be affirmed in the event of a satisfactory conclusion of the issues raised but could be lowered should the findings have a material impact on Serba Dinamik’s financials.
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Contacts:
Neo Xue Wei, +603-2717 2937/ xuewei@marc.com.my
Lee Chi Han, +603-2717 2939/ chihan@marc.com.my
Sharidan Salleh, +603-2717 2954/ sharidan@marc.com.my
[This announcement is available on MARC’s corporate website at www.marc.com.my ]
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This communication is provided by Malaysian Rating Corporation Berhad (MARC) based on information believed by MARC to be accurate and reliable as derived from publicly available sources or provided by the rated entity or its agents. MARC, however, has not independently verified such information and makes no representation as to the accuracy or completeness of such information. Any assignment of a credit rating by MARC is solely to be construed as a statement of its opinion and not a statement of fact. A credit rating is not a recommendation to buy, sell, or hold any security.
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