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-MARC keeps DutaLand at B, upgrades outlook to "stable".

M2 EQUITYBITES-December 22, 2010--MARC keeps DutaLand at B, upgrades outlook to "stable"(C)2010 M2 COMMUNICATIONS http://www.m2.com

22 December 2010 - MARC today kept its B rating on DutaLand Berhad's (KUL:DUTALND) outstanding MYR26.3m (USD8.4m/EUR6.4m) Redeemable Unsecured Loan Stocks (RULS) while upgrading its rating outlook to "stable" from "negative".

The company is active in property development and oil palm cultivation.

The rating affirmation and outlook change reflect the company's enhanced operations, although earnings direction is still dependent on the completion of its high-end 73-acre Kenny Heights Development, MARC noted. The company's large indebtedness when compared to its cash generation ability is another rating concern, the service said.

While DutaLand has met its debt maturity of MYR8.9m under the RULS in April 2010, it is still exposed to risks related to its debt obligations due to its weak liquidity despite recent asset sales, MARC added.

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Publication:M2 EquityBites (EQB)
Date:Dec 22, 2010
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