Yet another sukuk arrangement seems to have gone awry, this one in Malaysia.
Printing company Dawama Sdn Bhd missed a sukuk payment and has been downgraded by Malaysian Rating Corp Bhd (MARC).
During the round of defaults that plagued sukuk issuers in 2008-2009, most of the problems surfaced in the Persian Gulf region. It is too early to tell if this Malaysian default represents a new trend.
So much for the idea that sukuk are insulated from market and economic forces.
