M-Trex Corporation Sdn Bhd’s (M-Trex) MARC-3ID rating for its RM60.0 million Islamic Commercial Paper Programme (ICPs) remains on MARCWatch Negative where it had been placed since September 14, 2007 following a delay in the completion of its proposed refinancing of the ICPs.

The rating was first placed on MARCWatch Negative on September 14, 2007 due to M-Trex’s slow progress in resolving covenant breaches in relation to the usage of ICP proceeds for acquiring M-Trex Active Carbon Sdn Bhd (MTC) and M-Trex Galvanised Steel Sdn Bhd (MGS). Resolution of the covenant breaches through a refinancing of the ICPs was expected to be completed by the first quarter of 2008.

Since MARC’s December 14, 2007 update on the continued MARCWatch placement, the company has accelerated the build up of its sinking fund account. To date, a total of RM5.8 million has been placed in the sinking fund account, which will cover payments until July 2008.

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 refinancing of the ICPs. MARC will continue to closely monitor the progress of the restructuring initiatives and will issue updates on material developments.