MARC downgrades Perwaja steel's Islamic debt rating to DID.
"The rating agency has also removed Perwaja's rating from MARCWatch Negative where it has been placed since April 17, 2013," said MARC. "The rating actions follow Perwaja's failure to meet its repayment of RM50.0 million MMTN due on September 25, 2013. No event of default has been declared and the rating will remain at DID until the outstanding notes are redeemed, restructured or the rating is withdrawn at the request of the issuer. MARC notes that the MMTN noteholders have granted extension of the repayment to November 29, 2013. The agency believes the likelihood of further payment extensions is high in light of the company's pending financial restructuring.
"Following the downgrade, MARC will no longer conduct any rating surveillance on Perwaja's rating."
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