M-Trex Corporation Sdn Bhd’s (M-Trex) MARC-3ID rating on its RM60.0 million Islamic Commercial Paper Programme (ICPs) remains on MARCWatch Negative where it had been placed on September 14, 2007. MARC is unable to resolve the MARCWatch placement as the resolution of covenant breaches is contingent on the restructuring of its existing borrowings which is expected to be completed only in early 2008. Nonetheless, management has provided assurance that banking facilities are already in place to remedy the breach, and drawdown is expected soon.

M-Trex is an investment holding company with interests in the manufacturing and sale of anodised surface treated panels for audio and video equipment, and the trading of replacement and consumable parts for the automobile and semi conductor industries.

MARC expects to resolve the MARCWatch placement and withdraw the assigned rating upon the full redemption of the ICPs. Meanwhile, MARC will closely monitor the progress of the restructuring initiatives and will issue updates on material developments.