MARC today has downgraded its rating on Perwaja Steel Sdn Bhd’s (Perwaja) RM400.0 million Murabahah Medium Term Notes (MMTN) programme to DID from CID.

Sep 27, 2013 -
MARC today has downgraded its rating on Perwaja Steel Sdn Bhd’s (Perwaja) RM400.0 million Murabahah Medium Term Notes (MMTN) programme to DID from CID. The rating agency has also removed Perwaja’s rating from MARCWatch Negative where it has been placed since April 17, 2013.
The rating actions follow Perwaja’s failure to meet its repayment of RM50.0 million MMTN due on September 25, 2013. No event of default has been declared and the rating will remain at DID until the outstanding notes are redeemed, restructured or the rating is withdrawn at the request of the issuer. MARC notes that the MMTN noteholders have granted extension of the repayment to November 29, 2013. The agency believes the likelihood of further payment extensions is high in light of the company’s pending financial restructuring.
Following the downgrade, MARC will no longer conduct any rating surveillance on Perwaja’s rating.
Contacts:
Ngiam Tee Wei, +603-2082 2268/ teewei@marc.com.my;
Taufiq Kamal, +603-2082 2251/ taufiq@marc.com.my