S&P: Press Metal notes BB-

S&P said it assigned a BB- preliminary long-term corporate credit rating to Press Metal Aluminium Holdings Bhd.

The outlook is positive.

The agency also said it assigned a BB- preliminary issue rating to the proposed senior unsecured notes to be issued by Press Metal (Labuan) Ltd.

Press Metal unconditionally guarantees the proposed notes.

The preliminary rating is based on the expectation that Press Metal will use the proceeds from its proposed $400 million notes to refinance outstanding debt, S&P said.

This will help the company maintain adequate liquidity after the note issuance, the agency said.

The company's liquidity could come under pressure, weakening its credit profile, if the note issuance is less than $400 million or if it does not materialize, S&P said.

The ratings reflect the company's modest production and scale as an aluminum smelter and extruder, its single-asset and single-metal exposure to aluminum and a limited record of operations at larger production levels, the agency said.

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