One of the pioneering transactions in Malaysia's emerging ABS market has hit trouble. Ratings Agency Malaysia (RAM) last week placed all four public tranches totaling M$108.5 million ($29.6 million) on the ABS Land & Properties deal - Malaysia's first liquidating real estate asset securitization - on ratings watch negative.

The transaction, which was launched in February 2004, saw the securitization of M$237 million worth of properties owned by local conglomerate Sunway Holdings. Full repayment of principal and interest on the ABS paper is dependent on the sale of assets and cash flow generated on the underlying properties.

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