Ram Rating:Japan Earthquake Unlikely To Exert Rating Impact

KUALA LUMPUR (Bernama) - The recent earthquake in Japan is
unlikely to exert any rating impact on most rated Malaysian corporates, said RAM
Ratings.

"While it is still too early to accurately assess the extent of the damage,
the Japanese catastrophe will likely affect the supply chains for global
semiconductors and consumer electronics," it said in a statement Monday.

It said Tan Chong Motors Holdings Bhd (rated AA2/stable/P1) imports about 20
per cent of its parts and completely-knocked-down (CKD) and completely-build-up
(CBU) models from its Japanese principal, Nissan Motor Co Ltd, in Japan.

"TCMH has sufficient inventories for at least another month of production
for its Japanese-sourced models. Moreover, it also has the financial capacity to
absorb any adverse impact arising from short-term supply interruptions," it
said.

Meanwhile, the impact on Malaysia Pacific Industries Bhd (MPI), subsidiary
of AA3/stable/P1 rated Hong Leong Industries Bhd, is expected to be minimal as
it received supplies from its original equipment manufacturers on a consignment
basis.

"Only one of its customers, which sourced from Japan, may experience some
disruption. Nonetheless, this client only account for less than five per cent
of MPI's top line," it said.