RAM reaffirms ratings of E&O Property Penang's debt facility

KUALA LUMPUR: RAM Ratings has reaffirmed the enhanced AAA(bg)/P1(bg) ratings of E&O Property (Penang) Sdn Bhd (EOPP)'s RM350 million Bank-Guaranteed Commercial Papers/Medium-Term Notes Programme (CP/MTN).

"The long-term rating has a stable outlook," the rating agency said in a statement on June 7.

It said the enhanced long-term rating reflected the unconditional and irrevocable bank guarantee extended by Malayan Banking Bhd (currently rated AAA/P1 by RAM Ratings) while the enhanced short-term rating reflected the unconditional and irrevocable bank guarantee extended by Malayan Banking and Affin Bank Bhd (currently rated A1/P1 by RAM Ratings).

"The backing of the bank guarantee enhances the credit profile of the CP/MTN beyond EOPP’s stand-alone credit profile," it added.

EOPP, 94% held by E&O Property Development Bhd, is the developer of Seri Tanjung Pinang project -- a mixed development spanning 240 acres of reclaimed land in Tanjung Tokong, Penang.

The gross development value of the project is RM3.6 billion. -- Bernama