Credit Update: Outlook concern arises on weak 1Q15 results
· Weaker financial metrics following 1Q15 results and challenging business conditions in the near term raise some concern on the credit outlook.
· While we think UMW may avoid a negative outlook in RAM's upcoming review, the AAA rating will remain at risk if results do not improve.
· Nonetheless, we are not worried on UMW's repayment ability as outstanding bonds have short maturities (2015-2017) and this is supported by its strong liquidity position.
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