MARC maintains Press Metal Berhad’s (Press Metal) BBB rating on the outstanding Redeemable Convertible Secured Loan Stock (RCSLS) with detachable warrants on MARCWatch Negative. The rating was first placed on MARCWatch Negative on July 3, 2013 following the shutdown of Press Metal’s aluminium smelting plant in Mukah, Sarawak, as a result of damage suffered from the recent power outage in the state.
 
MARC notes that the full assessment on Press Metal’s damaged aluminium smelting plant has not been concluded as the insurance report is expected to be only finalised by end-October 2013. MARC has been informed that Press Metal has filed an interim claim under its RM300.0 million cover policy for the plant. Meanwhile, the group is utilising internally generated funds for clearing and reconstruction works and is targeting to gradually recommence its Mukah plant smelting operations by end-November 2013 and to achieve full production capacity by February 2014.

MARC will resolve the MARCWatch Negative placement upon fully assessing the impact of the damaged Mukah plant on Press Metal’s credit profile after taking into consideration the total reconstruction costs to be incurred for the plant.

Contacts:
Ngiam Tee Wei, +603-2082 2268/ teewei@marc.com.my;
Taufiq Kamal, +603-2082 2251/ taufiq@marc.com.my;
Rajan Paramesran, +603-2083 2233/ rajan@marc.com.my.