{
  "id": 15344019,
  "title": "MARC downgrades Zetrix AI's sukuk, debt remains on negative watch",
  "url": "https://urgent.news/2026/10/18/marc-downgrades-zetrix-ais-sukuk-debt-remains-on-negative-watch",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-18T03:48:40.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/10/1558076/marc-downgrades-zetrix-ais-sukuk-debt-remains-negative-watch"
  },
  "original_language": "en",
  "account": "On September 18, 2025, MARC Ratings granted Zetrix AI Bhd a positive outlook rating of AA-IS for its Islamic medium-term notes (IMTN) programme, amounting to RM2 billion. However, the rating agency has recently downgraded this rating to BB+IS, anticipating further downward pressure. This downgrade stems from mounting financial and liquidity pressures, governance uncertainties, and an increased risk of covenant breach.\n\nThese factors emerged as Zetrix AI's credit profile deteriorated since the earlier review on October 31, 2025. The downgrade is not due to a single event but rather the cumulative deterioration in the company's credit profile.\n\nThe downgrade is also tied to the potential covenant breach, which Zetrix AI was given until October 22 to address. This development was identified as a material escalation from a previous risk, heightening uncertainty over the sukuk holders' future actions.\n\nFurthermore, the proposed Nasdaq listing through a merger with a special purpose acquisition company could be delayed to the first quarter of 2027, affecting the prospective liquidity benefits. The group's reliance on transactions subject to execution risks also limits the assurance of funds for debt repayment.\n\nMoreover, the appointment of new external auditors has introduced further uncertainty, particularly regarding the recoverability of substantial capitalised development expenditure. This uncertainty could impact reported earnings, asset values, shareholders' equity, and other financial metrics.\n\nIn conclusion, MARC Ratings' downgrade of Zetrix AI's IMTN programme reflects the broadening and crystallisation of existing risks, rather than a single event. Further downward rating pressure could emerge if the covenant breach remains unresolved, expected liquidity sources fail to materialise, or additional financial information reveals further weakening in the group's financial position.",
  "summary": "KUALA LUMPUR: MARC Ratings has downgraded Zetrix AI Bhd’s Islamic medium-term notes (IMTN) programme rating to BB+IS from AA-IS, citing mounting financial and liquidity pressures, governance uncertainties and heightened risk of a covenant breach.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 5,
    "also_reported_by": [
      {
        "outlet": "New Straits Times",
        "title": "Zetrix AI faces RM2bil sukuk covenant risk",
        "url": "https://urgent.news/2026/10/16/zetrix-ai-faces-rm2bil-sukuk-covenant-risk",
        "published": "2026-10-16T02:33:35.000Z"
      },
      {
        "outlet": "Free Malaysia Today",
        "title": "Zetrix AI given until Oct 22 to fix potential sukuk covenant breach",
        "url": "https://urgent.news/2026/10/16/zetrix-ai-given-until-oct-22-to-fix-potential-sukuk-covenant-breach",
        "published": "2026-10-16T02:58:39.000Z"
      },
      {
        "outlet": "Malaysiakini",
        "title": "Zetrix AI shares fall 7.69pct on potential sukuk covenant breach risk",
        "url": "https://urgent.news/2026/10/16/zetrix-ai-shares-fall-7-69pct-on-potential-sukuk-covenant-breach-risk",
        "published": "2026-10-16T08:02:48.000Z"
      },
      {
        "outlet": "Bernama",
        "title": "Business : Zetrix AI Given Until Oct 22 To Remedy Sukuk Breach Or Face Payment Default",
        "url": "https://urgent.news/2026/10/16/business-zetrix-ai-given-until-oct-22-to-remedy-sukuk-breach-or-face",
        "published": "2026-10-16T11:08:54.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}