The MMM story again.

Blogged on the issue of Malaysian Merchant Marine before. See The MMM story.

Just saw that its debts ratings has been cut by MARC.

• Malaysian Merchant Marine debt's rating cut
  
  January 10 2007
  
  MALAYSIAN Rating Corp Bhd (MARC) has lowered Malaysian Merchant Marine Bhd's (MMM) RM120 million Al-Bai'Bithaman Ajil Serial Bonds (BaIDS) rating further, with a negative outlook.
  
  The rating was cut to "A-ID" from "AA-ID", on concerns over the company's rapid deterioration in financials stemming from poor results for the financial year ended August 31 2006.
  
  Other reasons cited include adverse financial impacts given its ageing fleet, aggravated by softening freight rates in most of the shipping segments it is involved in.
  
  The downgrade also reflects potentially weaker financial flexibility on the part of MMM to finance its fleet renewal and expansion initiatives amid high capital expenditure requirement coupled with prevailing steep vessel prices in the market.
  
  For the FY2006, MMM recorded a pre-tax loss of RM146.8 million on revenue of RM97.7 million.