Husni: We’ll look at MAS revamp’s effect on corporate borrowing costs later

KUALA LUMPUR: Finance Minister II Datuk Seri Ahmad Husni Mohamad Hanadzlah kept mum on concerns that a potential haircut of ailing national carrier Malaysia Airline Systems Bhd's (MAS) debts could lead to a spike in borrowing costs affecting corporate Malaysia.
"That one we discuss later because we have to look at the overall,holistic viewpoint because restructuring a company is not just a matter of financial requirement. There's also the operations and all that so we are looking at it holistically," he told reporters on the sidelines of the National Tax Conference 2014 yesterday.
A report published in a regional digital magazine said that major shareholder, Khazanah Nasional Bhd, is pushing for a restructuring plan which involves major write-downs on loans and bonds amounting to more than RM12.5 billion.
The article said the immediate knock-on effect of debt write-downs and haircuts on bondholders will be "a spike in the cost of borrowing for some of the biggest companies that dominate the country's stock market".
"Khazanah units were always ranked Triple A as far as lenders and investors were concerned. The Malaysia Airlines rescue will change that and trigger serious effects such as a rise in cost of doing business that will be passed on to the consumer," the report said quoting a government official involved in the rescue plan.
Husni declined to comment on the matter, saying only that the revival plan will be decided and announced later.