KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has downgraded Perwaja Steel Sdn Bhd's RM400 million Murabahah Medium-Term Notes(MMTNs) programme from AID to A-ID with a negative outlook.
The rating action, which affected RM160 million of outstanding MMTNs under the programme, was premised on the prolonged decline in the steel maker's operating performance," said the rating agency in a statement today.
It said Perwaja's strategic initiative to integrate backwards into iron ore processing would likely contribute to better longer-term performance.
However, MARC believed the uncertain industry conditions and ongoing pressure on Perwaja's profitability would make it difficult for the steel maker to improve its credit measures to a level commensurate with its previously assigned rating within the next 12 to 24 months.
"Hence, this view is reflected in our negative outlook on the company," it added. -- BERNAMA
The rating action, which affected RM160 million of outstanding MMTNs under the programme, was premised on the prolonged decline in the steel maker's operating performance," said the rating agency in a statement today.
It said Perwaja's strategic initiative to integrate backwards into iron ore processing would likely contribute to better longer-term performance.
However, MARC believed the uncertain industry conditions and ongoing pressure on Perwaja's profitability would make it difficult for the steel maker to improve its credit measures to a level commensurate with its previously assigned rating within the next 12 to 24 months.
"Hence, this view is reflected in our negative outlook on the company," it added. -- BERNAMA
