MARC has removed M-Trex Corporation Sdn Bhd’s (M-Trex) MARC-3ID rating  on its Islamic Commercial Paper Programme (ICP) from MARCWatch Negative and affirmed the MARC-3ID  rating with a negative outlook. The negative outlook primarily reflects increased refinancing risk associated with the company’s proposed refinancing of the ICP, which was earlier targeted for completion before June 2008.

Since MARC’s rating update of the MARCWatch Negative placement on March 12, 2008, the company has pared down RM3.0 million of the facility, leaving an outstanding RM57.0 million. As of June 13, 2008, the sinking fund account balance of RM2.5 million will adequately cover the build-up in the sinking fund requirements up to May 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 will continue to closely monitor the progress of the refinancing initiatives and will issue updates on material developments.