E&O ratings reaffirmed (3417)

PETALING JAYA: RAM Ratings has reaffirmed the respective long and short-term enhanced ratings of E&O Property (Penang) Sdn Bhd’s RM350mil bank-guaranteed commercial papers/medium-term notes programme (CP/MTN) at AAA(bg) and P1(bg).
The long-term rating has a stable outlook.
The
rating house said in a statement the long-term rating reflected the
unconditional and irrevocable bank guarantee extended by Malayan Banking Bhd (Maybank) (rated AAA/Stable/P1 by RAM).
Meanwhile, the short-term rating reflected the unconditional and irrevocable bank guarantee extended by Maybank and Affin Bank Bhd (rated A1/Stable/P1 by RAM).
The bank guarantees enhanced the credit standing of the CP/MTN beyond E&O Penang’s stand-alone credit profile, it said.
E&O
Penang is the developer of Phase 1 of the Seri Tanjung Pinang project,
a mixed development spanning 240 acres of reclaimed land with gross
development value of over RM4bil in Tanjung Tokong, Penang.
The company is 95.6%-owned by E&O Property Development Bhd, which in turn is a wholly-owned subsidiary of Eastern & Oriental Bhd.
As
at mid-May 2012, E&O Penang had sold about RM2bil worth of
properties since its maiden launch in October 2005, with about
RM634.76mil remained unbilled.